Deposit

Many specialist lenders offer up to 75% LTV on a small, licensed HMO, which means a deposit of around 25% of the valuation or purchase price. Larger HMOs, first-time landlords and pending-licence cases are often asked for more. The deposit is only one test: the rental stress test still has to pass on the room rents.

Yes — most specialist HMO lenders accept gifted deposits from family, subject to a gift letter, ID checks on the donor, and proof the gift is non-repayable. The donor may need to confirm they have no interest in the property. Anti-money-laundering source-of-funds checks apply. Gifts from non-family sources are scrutinised more heavily and may not be accepted.