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Some lenders offer HMO mortgages to first-time landlords, usually for smaller HMOs and with tighter terms such as a larger deposit or a minimum income. See what changes when you have no letting experience and what to have in place before you apply.
Reviewed by David Sampson, Founder & Director · Created 19 October 2026 · Last reviewed 19 October 2026
TL;DR
Yes, with some lenders. A first-time landlord can get an HMO mortgage, but the choice is narrower than for experienced landlords. Lenders that accept no letting experience usually limit the size of the HMO, may ask for a larger deposit or a minimum income, and look closely at how the house will be managed.
An HMO mortgage for a first-time landlord uses the same core tests as any HMO mortgage: the deposit, the rent from every room against the loan at a stressed rate, the licence and the planning position, all covered in the guide to HMO mortgages. What changes is how much risk the lender sees in a borrower who hasn't let property before, so the house, the numbers and the management plan all carry more weight.
The rules here are for England. Scotland, Wales and Northern Ireland have their own HMO licensing and tenancy laws.
Lenders define experience in different ways. Some want a set period of owning and letting a buy-to-let or an HMO, often one to two years, before they lend on an HMO purchase. Others accept first-time landlords for small HMOs, and some waive the rule for remortgages or for landlords who already own several lets.
One national buy-to-let lender, for example, asks purchase applicants who aren't portfolio landlords for two years of owning and letting a buy-to-let, or one year of owning and letting an HMO (lender criteria, accessed 19 Oct 2026). A building society asks for two years of landlord experience and for at least one applicant to own their own home (lending criteria, effective 24 Aug 2026). Other lenders run products aimed at first-time landlords, with their own limits.
Rental cover matters more when you have no track record, because the lender has no letting history to rely on. Test the rent from every room against the loan before you look at houses, using the HMO mortgage calculator, and allow for empty rooms.
A first-time buyer who has never owned a home has the fewest HMO options. Many buy-to-let and HMO lenders require you to own your own home, or to have owned property before. Where a lender does consider first-time buyers, expect a small HMO, a larger deposit, a minimum income and close checks on the plan.
An HMO mortgage for a first-time buyer is a different case from a first-time landlord who already owns a home, and lenders separate the two. Owning your own home shows a mortgage track record, while letting experience shows you can manage tenants. A buyer with neither is relying on income, deposit and the strength of the house alone.
A first-time landlord's application is stronger when the plan is already worked out. Lenders and valuers want to see that the house meets licence standards, that the rent is realistic for the area, that the deposit comes from your own funds, and how the HMO will be managed, whether by you or by a letting agent.
HMO landlords take on more legal duties than single-let landlords. Depending on the house and the council, you may need a licence, must meet minimum room sizes and fire safety standards, protect each deposit and keep safety certificates up to date. From 1 May 2026, new tenancies in England are periodic, and section 21 no longer applies.
A house with five or more people from two or more households needs a mandatory licence (SI 2018/221), and councils can license smaller HMOs too (GOV.UK HMO licence guidance, accessed 19 Oct 2026). Bedrooms must meet national minimums, such as 6.51 m² for one adult (SI 2018/616), and the house needs an EPC of E or better to be let. Tenancies became assured periodic tenancies with section 21 abolished (GOV.UK Renters' Rights Act roadmap, accessed 19 Oct 2026).
Planning matters as well, and the guide to Article 4 and planning rules for HMOs explains what lenders check. Turning a family home into a small HMO is usually permitted development, but an Article 4 direction removes that right, and seven or more residents always needs permission.
Some new landlords start with a single buy-to-let or a small HMO, then move to larger HMOs once they have a year or two of letting history. Others apply with an experienced joint applicant, use a managing agent, or buy through a limited company. Each route changes which lenders will consider the case.
Starting with a single let means a standard product, covered under buy-to-let mortgages, and a simpler first tenancy. A managing agent can reassure a lender about day-to-day management, though it adds a cost the rent has to cover. Buying through a limited company brings its own lender criteria, and the directors usually give personal guarantees.
Because only some HMO lenders accept first-time landlords, the lender search matters more than the rate at the start. Compare lenders' experience rules, size limits and deposit requirements together. A broker who handles HMO cases knows which lenders consider new landlords and can check your case before an application is made.
228 brokers list HMO lending, and you can compare brokers who handle HMO cases by location, verification and reviews. Ask each one how it is paid and which lenders it uses for first-time landlords.
If you'd rather start with the lenders yourself, list the points that rule you in or out: whether you own your own home, your letting history, your income and how it is evidenced, the deposit you can put in, the size of the house you want and whether you plan to buy personally or through a limited company. Then read each lender's published HMO criteria against that list, line by line. 15 lenders have an HMO focus, and you can compare HMO lenders side by side.
Yes, with some lenders. An HMO mortgage with no experience is usually limited to a smaller house, and the lender may want a larger deposit, a minimum income or proof that you own your own home. Lenders that ask for experience often want one to two years of letting history (lender criteria, accessed 19 Oct 2026).
It's hard. Many HMO lenders require at least one applicant to own their own home already (building society lending criteria, effective 24 Aug 2026), so a first-time buyer who has never owned property has very few options. Some first-time buyers buy their own home or a single let first, then move into HMOs later.
Expect at least 25% of the property's value, because published HMO criteria usually cap the loan at 75% (lender criteria, accessed 19 Oct 2026). Some lenders ask first-time landlords for more, and the deposit normally has to come from your own funds. Budget separately for licensing, fire safety work and furnishing.
A house is not an HMO if it is let to one household, such as a family, or to fewer than three people. Once three or more tenants from two or more households share a kitchen, bathroom or toilet, it becomes an HMO in England (Housing Act 2004, s.254), whatever the number of bedrooms.
It depends on the number of rooms, the area, the room sizes and whether bills are included, so there is no typical figure. Check local room rents for similar houses, allow for empty rooms and running costs, and test the result against the loan with an HMO mortgage calculator before you buy.
Yes, where planning permission is needed. If the house is in an Article 4 area, or will house seven or more people, you apply for planning permission and neighbours can comment on the application. Licensing decisions are made by the council, which can set conditions on the house and how it is managed.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. Information on this page is for general guidance only and does not constitute financial advice.Always verify details directly and seek independent advice before making financial decisions.