.svg){kind=small}
HMO Mortgages
What is a Tenancy Deposit for HMOs?
Definition: a money paid by tenants at the start of an HMO tenancy, held as security against rent arrears or property damage, and must be protected in a government-approved deposit protection scheme.
About Tenancy Deposit
Tenancy deposits are mandatory security payments required from HMO tenants, typically equivalent to 4-6 weeks' rent. Deposits must be protected in a government-approved scheme (DPS, TDS, or MyDeposits) within 30 days of receipt, with prescribed information provided to tenants.
HMO landlords failing to protect deposits correctly face penalties of up to three times the deposit amount and may be unable to serve Section 21 notices. Proper deposit protection is essential for HMO landlords to maintain legal compliance and protect their interests.
HMO lenders may consider deposit protection compliance when assessing landlord management standards, though deposits are not typically factored into rental income calculations. Understanding deposit protection requirements is crucial for HMO landlords managing multiple tenancies.
Free initial review
Speak to an HMO specialist
30+ specialist lenders compared. Open 8am to 8pm, Monday to Saturday.
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 .