HMO Mortgage Calculator

Calculate monthly payments and total costs for your HMO mortgage.

How We Calculate HMO Mortgage

Methodology & Data SourcesUpdated October 2025

Calculation 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) - Principal

Total interest over the life of the loan

Loan-to-Value (LTV)

(Loan Amount ÷ Property Value) × 100

Percentage of property value being borrowed

Data Sources

Current HMO mortgage rates from our lender panel (October 2025)

UK Finance mortgage market data

Bank of England base rate data

HMO lending criteria from specialist lenders

Key Assumptions

Interest Rate6.5%

Current average HMO mortgage rate

Loan Term25 years

Standard HMO mortgage term

Maximum LTV75%

Typical HMO mortgage LTV limit

Arrangement Fee£999

Average HMO mortgage arrangement fee

Calculation Accuracy

Mortgage calculations based on current market rates and standard HMO lending criteria. Actual rates may vary based on individual circumstances and lender criteria.