Specialist Product

Refurbishment HMO Mortgage

Finance for HMO refurbishment projects.

What is a 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.

All refurbished rental properties must meet the UK's minimum energy standards before being let.

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

HMO Conversion Calculator

Estimate costs to convert property into profitable HMO

Refurbishment HMO

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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 for up-to-date rates.

No rates available for this category at the moment.

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.

View Full Fees Guide

David Sampson

Updated 30 August 2025

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Refurbishment HMO Mortgage

What is a Refurbishment HMO Mortgage?