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HMO Dev Finance
HMO Development Finance Calculator
Calculate costs and potential profits for HMO development projects.
Related reading: HMO development finance guide.
This tool sketches staged costs and a finished value. It is not a live facility. For how LTC, LTGDV, drawdowns and exits work, see HMO development finance.
Your figures
Your results
Maximum loan available
£350,000
70.0% of a £500,000 total development cost
Finance costs
- Monthly interest
- £2,479
- Interest over 12 months
- £29,750
- Arrangement fee
- £5,250
- Early repayment fee
- £3,500
- Other fees
- £5,000
- Total finance cost
- £43,500
Interest is shown on the full loan for the whole term. Development loans are usually drawn in stages as the build progresses, so actual interest is often lower.
Illustrative figures only, based on the numbers you enter. Not a mortgage offer.
How we calculate Development Finance
Methodology and data sources, updated March 2026
Formulas
- Development Loan Amount
GDV × LTV PercentageMaximum loan based on gross development value
- Interest Reserve
Loan Amount × Interest Rate × Development PeriodInterest costs during development period
Data sources
- Yes:Development finance rates from specialist lenders (March 2026)
- Yes:Construction cost data from RICS
- Yes:HMO development finance criteria
- Yes:Planning permission requirements
Key assumptions
- Interest RateCurrent average development finance rate
- 9.5%
- Maximum LTVTypical development finance LTV limit
- 65%
- Development PeriodTypical HMO conversion timeline
- 18 months
Next steps
Free initial review
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