Mercantile Finance provides solutions to clients looking to borrowing against a house of multiple occupancy (HMO) and will also provide funding for Multi-Unit Freehold Blocks (MUFB) up to six stories.

Specialist HMO buy-to-let mortgages for your clients

  • Loans from £10,000 to £500,000
  • First and second charge mortgages
  • Lending up to 75% loan to value (LTV)
  • Individuals and limited companies accepted
  • 125% rental coverage
  • Top slicing available
  • No limit on the number of bedrooms
  • First time landlord/first time buyers with no rental history
  • Non-standard construction properties
  • Properties in England, Wales, Scotland & Northern Ireland

Mercantile Trust provides buy-to-let solutions to those clients with specialist requirements. Customers with credit problems? We can help.

Do they need a flexible approach to affordability calculations? We accept personal income and surplus buy-to-let income to supplement rental coverage. Ask us about top slicing!

Call our advisers today. Your clients could get a lending decision in just one call.

Why choose Mercantile Trust?

Customers value our common sense and flexible approach to lending, as we recognise that one size does not fit all. If your customers are looking to purchase an unusual property, their circumstances require personal consideration, perhaps they’ve had credit history issues, or for any other reason they are struggling to borrow, we could be the lender for them.


What is a HMO mortgage?

An HMO buy-to-let mortgage is for customers who are looking to buy a property and rent it out to tenants. The property in question will be either a house of multiple occupancy (HMO) or multi-unit freehold blocks (MUFB) of up to six stories.

What is the benefit of a HMO mortgage?

The main benefit of a buy-to-let mortgage is that your customer can generate income from an investment property. Rental demand continues to grow and so does the average minimum deposit requirement for first time buyers. This often causes them to rent a property as an alternative to buying, due to it being more affordable.

Is my client eligible for a HMO mortgage on their property?

For your customers to enquire for a buy-to-let mortgage they must fit the eligibility criteria. Our criteria is as followed:

  • They must be at least 18 years old
  • They must own their main residence or been renting for a minimum of 12 months
  • They will need to meet the minimum deposit requirements

How much can my client borrow with a HMO mortgage?

There are a few factors that determine the amount that your customer can borrow for a first charge mortgage. Lenders will look at personal traits, such as:

  • The value of the property or the purchase price
  • Your client’s annual income
  • Annual rental income
  • Their commitments
  • Their credit history
  • The deposit available

At Mercantile Trust, we offer buy-to-let loans from £25,000 to £500,000.

Is HMO mortgage suitable for my client?

If your customer is looking to generate additional finance, a buy-to-let mortgage may be suitable for them.

It is important to note that there are risks for any type of borrowing, so it is always worth doing research before considering a mortgage.

View our full criteria here