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BRR (Buy, Refurbish, Refinance)
A property investment strategy involving buying a property, adding value through refurbishment, and refinancing to release capital for further investments.
RefurbishmentRead more
Specialist Product
Refurbishment HMO Mortgage
Finance for HMO refurbishment projects.
What is Refurbishment HMO Mortgage?
Refurbishment HMO mortgages are short-term financing solutions that combine property purchase costs with renovation expenses, enabling investors to buy properties that require improvement work to become viable HMOs. These products typically offer 70-75% of both the purchase price and refurbishment costs, with funds released in stages as work progresses. The refurbishment period usually lasts 6-18 months, during which interest-only payments keep costs manageable. Upon completion, borrowers typically refinance onto a standard HMO mortgage. This financing approach is ideal for properties that need conversion work, such as large family homes being split into HMO rooms, or existing HMOs requiring modernization. Lenders will assess both the current property value and the expected value post-refurbishment, making detailed project plans and contractor quotes essential for approval.
Key Features of Refurbishment HMO Mortgage
Refurb Costs Included
Finance both purchase price and refurbishment costs.
Staged Releases
Funds released in stages as work progresses.
Light Touch Refurb
Suitable for cosmetic improvements and upgrades.
Project Management
Support and monitoring throughout the refurbishment.
Value Add Focus
Financing to maximize property value and rental yield.
Exit to BTL
Seamless transition to long-term buy-to-let mortgage.
Refurbishment HMO Mortgage Eligibility Requirements
Check if you meet our criteria for refurbishment hmo mortgage:
Property Requirements
Suitable for HMO conversion
Realistic refurbishment budget
Planning permission if required
Good end value potential
Borrower Requirements
Refurbishment experience preferred
Strong project management skills
Adequate financial resources
Clear exit strategy
Refurbishment HMO Mortgage Process
Our streamlined mortgage process makes it simple and stress-free:
Discuss your mortgage needs and current situation with our specialist advisors.
Assess your financial situation
Review your refurbishment HMO property requirements
Understand your mortgage goals
Identify suitable lenders and products
Typical Timeline: 6-8 weeks
Our experienced team works to ensure your mortgage completes as quickly as possible. We'll keep you updated throughout the process and handle any issues that arise.
Refurbishment HMO Mortgage Calculators
Current Refurbishment HMO Mortgage Rates
Live rates from our specialist lenders for refurbishment hmo mortgage:
Important Notice: The rates displayed on this page are not currently correct and should not be used for decision making. Please contact us for up-to-date rates.
No rates available for this category at the moment.
Please check our rates page for all available options.
Refurbishment HMO Mortgage Success Stories
Refurbishment HMO Mortgage Fees Guide
Understand the costs involved with refurbishment hmo mortgage:
Arrangement Fee
1.5% - 2.5%
Paid to: Lender
Due: Completion
Fee charged by the lender for setting up the refurbishment HMO mortgage. Covers both purchase and refurbishment funding.
Arrangement Fee
Paid to: Lender
1.5% - 2.5%
Due: Completion
Fee charged by the lender for setting up the refurbishment HMO mortgage. Covers both purchase and refurbishment funding.
Valuation Fee
£500 - £1,500
Paid to: Surveyor/Lender
Due: Application
Professional valuation including assessment of current value and post-refurbishment value (GDV).
Valuation Fee
Paid to: Surveyor/Lender
£500 - £1,500
Due: Application
Professional valuation including assessment of current value and post-refurbishment value (GDV).
Legal Fees
£800 - £2,000
Paid to: Solicitor
Due: Completion
Legal costs for the mortgage including property searches and retention arrangements for refurbishment funds.
Legal Fees
Paid to: Solicitor
£800 - £2,000
Due: Completion
Legal costs for the mortgage including property searches and retention arrangements for refurbishment funds.
Monitoring Fee
£300 - £600
Paid to: Surveyor/Lender
Due: During Refurb
Fee for monitoring refurbishment progress and releasing funds in stages. Charged per inspection visit.
Monitoring Fee
Paid to: Surveyor/Lender
£300 - £600
Due: During Refurb
Fee for monitoring refurbishment progress and releasing funds in stages. Charged per inspection visit.
Broker Fee
0.5% - 1.5%
Paid to: Broker
Due: Completion
Fee for arranging the refurbishment HMO mortgage including specialist refurbishment expertise.
Broker Fee
Paid to: Broker
0.5% - 1.5%
Due: Completion
Fee for arranging the refurbishment HMO mortgage including specialist refurbishment expertise.
Quantity Surveyor Fee
£500 - £1,200
Paid to: Quantity Surveyor
Due: Application
Professional assessment of refurbishment costs and schedule of works. Required for staged release funding.
Quantity Surveyor Fee
Paid to: Quantity Surveyor
£500 - £1,200
Due: Application
Professional assessment of refurbishment costs and schedule of works. Required for staged release funding.
Important Note
Fees can vary significantly between lenders and depend on your specific circumstances. Our brokers will provide you with a detailed breakdown of all costs before you proceed. Some fees may be negotiable or waived depending on the lender and loan amount.
Refurbishment HMO Mortgage FAQs
Find answers to common questions about Refurbishment HMO Mortgage:
A refurbishment HMO mortgage covers both the purchase and renovation costs of a property before it can be used as an HMO.
Last updated: 2024-03-13
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Covered works typically include structural repairs, room conversions, and HMO-specific safety upgrades.
Last updated: 2024-03-12
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Funds are usually released in stages as renovation milestones are reached and approved by the lender's surveyor.
Last updated: 2024-03-11
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Refurbishment HMO mortgage rates typically range from 5.5% to 8.5%, higher than standard HMO mortgages due to increased risk during the renovation period.
Last updated: 2024-03-10
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Most lenders require a minimum 25-30% deposit for refurbishment HMO mortgages, though some may accept 20% for experienced landlords with strong renovation plans.
Last updated: 2024-03-09
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Your lender will arrange a surveyor to assess the property and renovation works. You may also want an independent survey for peace of mind.
Last updated: 2024-03-08
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Criteria include renovation experience, strong financial position, detailed renovation plans, realistic cost estimates, and compliance with building regulations.
Last updated: 2024-03-07
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Refurbishment HMO mortgage applications typically take 6-10 weeks due to additional complexity, renovation plan reviews, and potentially multiple property inspections.
Last updated: 2024-03-06
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You'll need proof of income, bank statements, property details, detailed renovation plans, cost estimates, builder quotes, and potentially planning permission.
Last updated: 2024-03-05
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Some lenders may include planning permission costs in the refurbishment loan, but this varies by lender. You may need to cover these costs separately.
Last updated: 2024-03-04
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Refurbishment HMO Mortgage Key Terms
Important terminology related to Refurbishment HMO Mortgage:
Updated 16 Jul 2025
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