HMO Mortgages & HMO Financing in Southwark

Support for professional HMOs, co-living and multi-let properties in Southwark and SE1.

Shared accommodation is in high demand across Southwark, London Bridge, Borough, Bermondsey and Elephant & Castle. Whether you’re creating a high-end co-living space or running a more traditional HMO, specialist finance is usually required.

We help you understand how HMO lenders view central London properties and, where advice is needed, introduce you to FCA-authorised mortgage advisers familiar with this sector.

Typical Southwark HMO Scenarios

• Converting Victorian terraces into professional house shares.
• Licenced HMOs serving City professionals and key workers.
• Multi-unit properties and large HMOs requiring commercial-style underwriting.

Key HMO Mortgage Types

• Purchase finance for HMOs and conversion projects.
• Remortgages to release capital or move onto more competitive rates.
• SPV limited company HMO mortgages for portfolio landlords.
• Bridging & refurbishment finance for heavy works and change of use.

What HMO Lenders Consider

Property, Layout & Licensing

• Number of rooms vs communal space.
• Compliance with Southwark Council HMO licensing and amenity standards.
• Fire doors, alarms, emergency lighting and escape routes.

Tenants & Tenancy Structure

• Young professionals, students or mixed households.
• Individual ASTs vs single AST to a company or group.
• Rent levels and demand in SE1/SE16.

Borrower Profile

• HMO and landlord experience.
• Personal income and overall portfolio.
• Limited company vs personal ownership.

Valuation Approaches for HMOs in Southwark

• Bricks & mortar: Valued like a standard house or flat.
• Investment basis: Valued on a yield from gross or net rental income, more common on larger HMOs and semi-commercial assets.

HMO vs Standard Buy-to-Let in SE1

• Often higher stress tests on rental income.
• Closer scrutiny of management, licensing and property condition.
• Different lender panels willing to work with inner London HMOs.

Our Role & FCA Disclaimer

We are not authorised to provide regulated mortgage advice. Our role is to outline how HMO lending works in Southwark and, when required, introduce you to an FCA-authorised adviser who can recommend suitable products and lenders.

Process Overview

1. Initial call: Discuss property, tenancy, licence position and your experience.
2. High-level options: Identify potential types of lender and structure.
3. Introduction: Connect you with an HMO mortgage adviser.
4. Application & valuation: Managed by the adviser with the chosen lender.
5. Offer & completion: Solicitors complete the legal work ready for completion.

Useful Links

Buy-to-Let Mortgages ·
Remortgages ·
Commercial Mortgages ·
Contact Us

HMO FAQs — Southwark

Can I raise capital against an existing licensed HMO?

In many cases yes, subject to valuation, rental income and lender criteria. A specialist adviser can outline your options.

Do all HMOs need a licence?

Not always, but many do. Local authority rules are crucial – lenders will expect you to comply with Southwark’s licensing requirements.

Can I use a limited company to hold my HMO?

Yes, many landlords do. Lenders will still underwrite the individuals behind the company as directors/guarantors.

Discuss HMO Finance in Southwark

If you’re investing in or refinancing an HMO in Southwark or SE1, send us an enquiry and we’ll help you explore your options and arrange a suitable introduction.