Buy to let specialist lender Fleet Mortgages has launched a new guide for advisers and the property industry on HMOs. 

It’s purpose is to help mortgage advisers support both new and existing landlord clients looking to invest in HMOs, with information on what defines an HMO, how licencing works, the implications of Article 4 Directions, and how planning permission fits into the picture.

The guide outlines definitions of small and large HMO; Mandatory, Additional and Selective Licencing requirements; Change of use rules between C3, C4 and Sui Generis planning categories; How Article 4 Directions impact permitted development rights; Examples of different licencing/planning scenarios; and Fleet’s own HMO lending criteria and how it can support landlords.

Fleet recently launched a new range of five-year, fixed-rate mortgages products, available up to 55% LTV, including specific options for HMO/multi-unit block borrowers – these include a 5.19% mortgage with a 3% fee (minimum of £750) and a 5.74% mortgage with a fixed £999 fee.

Steve Cox, chief commercial officer at Fleet Mortgages, comments: “HMOs remain an attractive investment opportunity, often providing higher yields and greater income security than standard buy-to-let properties. However, they come with a more complex regulatory landscape, particularly around licencing and planning.

“This guide aims to demystify some of those requirements and provide clarity on how Article 4 areas work, what different licence types involve, and what sort of properties can be considered. It’s a really useful tool for those advisers supporting clients who are either new to HMOs or are looking to diversify and expand their portfolios into this space.

“We want advisers to feel confident discussing HMOs with their clients, and to know that Fleet is here to help with both product expertise and lending support.”