A specialist lender has raised its maximum loan-to-value on eligible HMO mortgages to 80%, giving experienced landlords another option at a time when borrowing costs remain high. Here is what it means and how to get your case ready.
What has changed
On 15 October 2026, Hampshire Trust Bank said it had raised its maximum loan-to-value (LTV) on eligible houses in multiple occupation (HMOs) to 80%, aimed at professional landlords who meet its lending criteria. The bank said the move reflects how experienced landlords now use HMOs as part of long-term portfolio plans.
Not every HMO lender goes this high, and a smaller deposit will not suit every property or every landlord. Higher LTV usually comes with tighter criteria, and the rent still has to pass the lender's stress test.
Why the rental stress test matters more right now
Borrowing costs are elevated. Moneyfacts reported average residential fixed rates of 5.96% (two-year) and 5.99% (five-year) on 15 October 2026, up from 5.73% and 5.78% a month earlier. Buy-to-let and HMO pricing moves in the same climate, and lenders test rent against a stressed rate. With more borrowing at 80% LTV, the room-by-room rent has to work harder to cover it.
That is why the structure of the case, not just the deposit, often decides how much a lender will offer.
What HMO lenders typically look at
- Your experience: a track record of letting, ideally including HMOs, for the higher-LTV options.
- Licensing and planning: a valid HMO licence where needed, and Article 4 or sui generis planning status confirmed.
- Valuation basis: whether the property is valued as an investment (on its income) or as bricks and mortar.
- Ownership: personal name or limited company (SPV), which affects stress tests and tax.
- Your wider portfolio: lenders review your existing properties, rents and mortgages, not just the new one.
Quick tips
- Check the council's licensing and Article 4 position before you offer, not after.
- Get a realistic room-by-room rent schedule from a local letting agent to support the valuation.
- Keep an up-to-date portfolio schedule: it speeds up every application.
- Compare a lower-LTV option too: a slightly bigger deposit can widen lender choice and improve affordability.
- Remember that most buy-to-let and HMO mortgages are not regulated by the FCA, so take specialist advice.
How OMB can help
Our CeMAP-qualified advisers work with specialist HMO lenders, and OMB was named Buy-to-Let Mortgage Broker of the Year at the Business Moneyfacts Awards 2023. See how we arrange HMO mortgages, read our Coventry HMO refurb and refinance case study, and download the portfolio schedule from our client toolkit before you speak to us. New to HMOs? Our article on HMO licensing, Article 4 and valuations is a good place to start.
Sources
- Mortgage Solutions: HTB ups HMO lending to 80% LTV (15 October 2026)
- Property118: Buy to let lenders offer rate cuts and higher HMO terms (16 October 2026)
- The Intermediary: Average mortgage rate holds at 5.88%, Moneyfacts data (16 October 2026)
To talk it through, contact us or start your enquiry.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.