Fleet Mortgages, the buy-to-let specialist lender, has today (4th April 2025) launched a new Guide for advisers and landlords entitled, ‘A Guide to HMOs: Licencing, Planning & Article 4’.
The new guide is designed to help mortgage advisers support both new and existing landlord clients looking to invest in Houses in Multiple Occupation (HMOs), with clear information on what defines an HMO, how licencing works, the implications of Article 4 Directions, and how planning permission fits into the picture.
Available now via the Fleet Mortgages website, the Guide outlines:
- The definitions of small and large HMOs.
- 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.
- Fleet’s own HMO lending criteria and how it can support landlords
Fleet said the Guide has been created in response to growing interest in HMO investment and is part of its wider commitment to education, support and product provision for specialist buy-to-let borrowers.
The new Guide can be downloaded by visiting: https://www.fleetmortgages.co.uk/wp-content/uploads/2024/12/Fleet-HMO-Guide-v1.pdf
The lender 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, commented:
“We’re very pleased to be able to share this new guide with advisers and their landlord clients. 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.”
