HMO Development Finance Calculator

Calculate costs and potential profits for HMO development projects.

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How We Calculate Development Finance

Methodology & Data SourcesUpdated March 2026

Development Loan Amount

GDV × LTV Percentage

Maximum loan based on gross development value

Interest Reserve

Loan Amount × Interest Rate × Development Period

Interest costs during development period

Development finance rates from specialist lenders (March 2026)

Construction cost data from RICS

HMO development finance criteria

Planning permission requirements

Interest Rate9.5%

Current average development finance rate

Maximum LTV65%

Typical development finance LTV limit

Development Period18 months

Typical HMO conversion timeline

Calculation Accuracy

Development finance calculations based on current market conditions. Actual rates depend on project complexity and location.

This calculator is a planning tool. For current rates, lender criteria, and specialist advice:

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