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HMO Mortgages
HMO Mortgage Calculator
Estimate monthly repayments, interest-only costs and a sketch of maximum borrowing. Not a live rate table.
Related reading: how HMO mortgages work, current HMO mortgage rates and HMO yield calculator.
This tool estimates monthly repayments from the figures you enter. It is not a live rate table. For typical LTV, deposit and ICR, see how HMO mortgages work. For indicative market rates, see current HMO mortgage rates. Pair it with the HMO yield calculator.
Your figures
Loan £262,500 · deposit £87,500
Typical 5-year HMO fixes: 4.5% to 6.4%
Years on the initial rate
Your results
| Measure | Interest only | Repayment |
|---|---|---|
| Monthly | £1,203 | £1,612 |
| Interest, first 5 yrs | £72,188 | £68,557 |
| Interest, full term | £360,938 | £221,094 |
| Total repaid | £623,438 | £483,594 |
- Loan amount
- £262,500
- Deposit
- £87,500
- Fixed period
- 5 years
Illustrative figures only, based on the numbers you enter. Not a mortgage offer.
How we calculate HMO Mortgage
Methodology and data sources, updated October 2026
Formulas
- Monthly Mortgage Payment
P × [r(1+r)^n] ÷ [(1+r)^n - 1]Standard mortgage payment formula where P=principal, r=monthly rate, n=total payments
- Total Interest Paid
(Monthly Payment × Total Months) - PrincipalTotal interest over the life of the loan
- Loan-to-Value (LTV)
(Loan Amount ÷ Property Value) × 100Percentage of property value being borrowed
Data sources
- Yes:Standard amortising repayment formula
- Yes:Interest-only: loan × annual rate ÷ 12
- Yes:The rate is the figure you enter — this page does not publish a live HMO rate
Key assumptions
- Interest RateNot a live HMO mortgage rate. Mid-range of the typical 5-year HMO fix at 75% LTV (indicative rate book, September 2026)
- 5.5% (illustrative; you enter the rate)
- Loan TermExample term unless you change it
- 25 years
- Example LTVExample starting point. TMW publishes 75% on its own HMO page (checked 22 October 2026); other lenders differ.
- 75%
Next steps
What is HMO mortgage calculator?
This HMO mortgage calculator estimates monthly repayments and a sketch of maximum borrowing from the figures you type. It is a planning tool, not a live rate table and not an agreement in principle. For how the loan is underwritten, read how HMO mortgages work. For indicative market figures see current HMO mortgage rates.
Deposit and LTV for HMO mortgage calculator
Loan-to-value is the loan divided by the lender’s valuation. A 25% deposit on a £400,000 valuation is a 75% LTV loan of £300,000. This page does not publish a single maximum LTV. The Mortgage Works publishes 75% on its own HMO page (checked 22 October 2026). Other lenders’ maxima are only used when that lender’s own page states them. A smaller deposit raises LTV and usually the stress the rent must pass.
Rental stress test (ICR) explained
Interest cover (ICR) is stressed annual rent divided by stressed annual interest. TMW publishes 175% ICR for all HMO applications. Paragon publishes 130% or 145% on HMO/MUB by tax band. Aldermore publishes 130% or 145% on HMO. Those are the lenders’ own pages, checked 22 October 2026. This calculator can sketch a payment; it does not replace the named lender’s ICR. A loan that “looks cheap” monthly can still fail cover.
HMO mortgage calculator costs and fees
Add arrangement, valuation, legal and broker fees to the monthly figure. A fee-free product with a higher rate can still cost more over a two-year fix than a 2% fee on a lower rate. There is no unsourced fee card here. The illustration is the source.
Which lenders offer HMO mortgage calculator?
Lenders do not “offer this calculator”. They offer HMO products. Compare HMO mortgage lenders after you have a loan size. The tool does not pick a lender.
How to get HMO mortgage calculator: step by step
- Enter the price or the valuation you expect, not a brochure GDV.
- Enter the deposit you actually have.
- Choose repayment or interest-only and a term.
- Type an example rate — this page does not insert a live one.
- Read the monthly figure, then check ICR and fees on a dated illustration.
How the calculation works
Repayment uses the standard amortising formula on the loan, monthly rate and number of payments. Interest-only is loan × annual rate ÷ 12. LTV is loan ÷ value. Maximum-borrowing sketches are not a lender decision. Methodology sits in the card above this section.
Returns, rent and yield
A cheaper monthly payment is not a better investment if the rooms do not let. Run the same house through the HMO yield calculator before you treat this payment as cash flow.
Tax and stamp duty
Stamp duty is a purchase cost, not a monthly mortgage cost. Use the HMO stamp duty calculator. Limited-company buyers still pay the higher additional-dwelling rates in most HMO cases — see limited company HMO mortgages.
Worked example
A licensed six-bed at a £360,000 valuation, £90,000 deposit, £270,000 loan (75% LTV), interest-only at an example 6% is £1,350 a month before fees. That is a method, not a live TMW or Aldermore offer. If stressed rent fails 175% on TMW’s published ICR, the payment is irrelevant.
What the result means for your mortgage
Treat the result as a sketch of cash you must find each month. The lender will revalue, restress and reprice. If the figure only works at an example rate below anything on a current illustration, the deal does not work.
FAQs
HMO mortgage calculator questions.
How much would I pay every month?
The tool estimates the monthly payment from the price, deposit, term and the example rate you enter. It is not a live lender quote. Interest-only and repayment give different monthly figures on the same loan.
What are interest rates?
The rate is the annual cost of the loan. This calculator does not publish a live HMO rate. Enter an example and compare it with a dated illustration. See current HMO mortgage rates for indicative market figures, not an offer.
What do banks do?
An HMO lender values the house, stresses the rent and decides if the loan is acceptable. This tool does not underwrite. A high-street personal-name desk is not the same as a specialist HMO lender.
What Happens if You Default on Your Mortgage?
If you do not keep up repayments, the lender can take possession of the property. That is why every quote on this site carries the repossession warning. The calculator does not model arrears.
How much could my mortgage cost?
Cost is the monthly payment plus arrangement, valuation, legal and broker fees over the fix — not the first month alone. There is no unsourced headline rate on this page.
How much rent should I charge?
Charge what the local room market will pay and what the licence allows. The lender stresses that rent, not a brochure yield. Use the HMO yield calculator for rent versus cost.
Next step: quote / speak to a specialist
Send the valuation, deposit and whether you need interest-only. We will not treat this calculator output as a quote. Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Important: Rates shown are indicative and subject to status. Your home may be repossessed if you do not keep up repayments on your mortgage. Terms and conditions apply. For current rates and full details, please .
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