Answers for England and Wales

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Question: 6.6.4. Does the lender lend where the property comes within the definition of a house in multiple occupation? If yes, what are your requirements?

Lender Answer
Accord Buy to Let We do not lend where a mandatory licence for the property must be obtained from the Local Authority. We do lend where the property is or will be an unlicensed house in multiple occupation or a house, whether or not a house in multiple occupation, which is subject to additional licensing, selective licensing or any other form of discretionary licensing which is not mandatory licensing. In all cases where a licence for the property is required, you must ensure that the licence is in place on or before completion of the loan.
Accord Mortgages Ltd If we do lend in these circumstances, the mortgage offer will specify our requirements.
Adam & Company No

Adam & Company International No

Ahli United Bank (UK) plc No
Aldermore Bank PLC Yes, subject to the requirements specified in the mortgage offer being satisfied prior to the submission of your COT.
Allied Irish Bank (GB), a trading name of AIB Group (UK) Refer to AIB Group (UK) plc, Central Securities (GB), 92 Anne Street, Belfast, BT1 3H
April Mortgages No. April will not lend
Atom Bank plc No. We do not lend on properties that are subject to multiple occupancy.
Aviva Equity Release UK Ltd No.
Bank of China No.
Bank of Ireland (UK) plc You must report this matter and not proceed without our written consent. We will not lend if the property is a HMO and one or more of the following apply:
1. The property is occupied by five or more adult persons.
2. There is more than one tenancy agreement in place.
3. The property is subject to mandatory or additional licensing by the local authority.
We may accept properties that are subject to selective licensing by the local authority but not if any of points 1 to 3 also apply.

Bank of Ireland as Bank of Ireland Mortgages You must report this matter and not proceed without our written consent. We will not lend if the property is a HMO and one or more of the following apply:
1. The property is occupied by five or more adult persons.
2. There is more than one tenancy agreement in place.
3. The property is subject to mandatory or additional licensing by the local authority.
We may accept properties that are subject to selective licensing by the local authority but not if any of points 1 to 3 also apply.
Bank of Scotland Beginning A Yes. A maximum of 5 unrelated occupiers to sign a single Assured Shorthold Tenancy and any mandatory HMO licence to be in place.
Bank of Scotland Beginning O Yes. A maximum of 5 unrelated occupiers to sign a single Assured Shorthold Tenancy and any mandatory HMO licence to be in place.
Bank of Scotland Private Banking  
Barclays Bank UK PLC No
Barnsley Building Soc, a trading name Yorkshire Building Soc No. If we do lend in these circumstances, the mortgage offer will specify our requirements.
Birmingham Bank Yes. Max 8 lettable rooms, licensed if more than 5 occupants. We require a copy of the licence.
Birmingham Midshires Yes. A maximum of 5 unrelated occupiers to sign a Single Assured Shorthold Tenancy and any mandatory HMO licence to be in place.
Bluestone Mortgages No.
Bradford & Bingley Limited Yes, for Further Advances - there must be a licence in place.
Britannia, a trading name of The Co-operative Bank plc No
Buckinghamshire Building Society No
Chelsea Building Society (a trading name of Yorkshire BS) If we do lend in these circumstances, the mortgage offer will specify our requirements.
CHL Mortgages Yes. CHL Mortgages lends on properties defined as HMOs. Please ensure that any remortgage transactions on security currently used as a HMO have a valid licence in place on Completion. Additionally, please ensure all transactions involving HMOs comply with the terms in our ‘Solicitors Instructions’ letter, Mortgage Offer and Mortgage Conditions.
Clydesdale Bank plc No.
Co-operative Bank plc No.
Coutts No
Coutts Finance Co No
Coventry Building Society The only type of HMO that is acceptable is where the property is let to up to a maximum of 4 tenants on a single AST agreement and where the property is not subject to a mandatory licence.
Cynergy Bank We will consider on a case by case basis.
As per 1.11.a
Danske Bank We do not currently provide buy-to-let mortgages in England & Wales.
Darlington Building Society No
DB UK Bank Ltd Yes, but please note our requirements

Multi tenanted properties will only be considered where tenants are party to a single 'joint and several' Assured Shorthold Tenancy Agreement. Please check the mortgage offer to confirm that we are aware that the property is to be tenanted as this facility is only available on specific Buy to Let schemes.
Dudley Building Society No.
Ecology Building Society No
Family Building Soc (a trading name of National Counties BS) No.
First Direct No, we do not lend on this type of property
Fleet Mortgages Yes. Your attention is drawn, however, to the terms of the mortgage offer.

Foundation Home Loans Please refer to your instructions in the mortgage offer. Each condition and/or requirement must be satisfied prior to submission of the Certificate of Title
Furness Building Society No
GE Money Home Lending Ltd GE Money Home Lending has withdrawn from the UK mortgage market.
Gen H No.
Godiva Mortgages Ltd The only type of HMO that is acceptable is where the property is let to up to a maximum of 4 tenants on a single AST agreement and where the property is not subject to a mandatory licence.
Habito No
Halifax Yes. A maximum of 5 unrelated occupiers to sign a Single Assured Shorthold Tenancy and any mandatory HMO licence to be in place.
Halifax Loans Ltd Please refer to Halifax Loans Limited, Trinity Road, Halifax, HX1 2RG
Hampden & Co. plc No.
Handelsbanken Yes, on a Buy to let basis. The lender requires an original/copy of the planning permission or established use certificate and valid/ current HMO licences or confirmation from the relevant council that a certificate is not required, with maximum 6 bedrooms, single tenancy agreement covering all occupants are jointly and severally liable, and the property must meet the legal bedroom sizes. In all cases where a licence for the property is required, you must ensure that the licence is in place on or before completion of the loan.
Harpenden Building Society HMO is not acceptable
Hinckley and Rugby Building Society No.
Hodge No. We do not lend on properties that are subject to multiple occupancy.
Hodge Equity Release No. We do not lend on properties that are subject to multiple occupancy.
Holmesdale Building Society No.
HSBC UK Bank plc No, we do not lend on this type of property
Intelligent Finance Please refer to Securities, Intelligent Finance, PO Box 890, Leeds, LS1 9UG


Investec Bank plc Yes, where agreed and specified in the mortgage offer.
ITL Mortgages The only type of HMO that is acceptable is where the property is let to up to a maximum of 4 tenants on a single AST agreement and where the property is not subject to a mandatory licence.
JPMorgan Chase Bank, N.A. No.
Kensington Mortgage Company Ltd Yes, provided that any required local authority license is in place on completion or that the borrower has confirmed they will apply for a satisfactory HMO licence in relation to the Property within 30 days of completion and undertakes to provide Kensington with a copy of the applications form prior to completion. Please provide confirmation prior to Completion if the property falls within the definition of a house in multiple occupancy as this facility is only available on specific Buy to Let schemes.
Kent Reliance (a trading name of OneSavings Bank plc) Please refer to special conditions in the mortgage offer. If there is no special condition applicable to the circumstances please report the position to us and wait for further instructions.

Where the Bank has assessed the property as a HMO, you must:

1. Satisfy yourselves that use as a HMO is authorised by either:

a) a valid planning permission,

b) certificate of lawful use or

c) permitted development rights (PDR)

If the property was converted to and has been used continuously as a HMO under permitted development rights prior to the date of any revocation of PDR following an appropriate Article 4 direction, the borrower must provide you with appropriate evidence to demonstrate the continued use of the Property as a HMO prior to the Article 4 direction up to the date of Completion in the form of suitable evidence such as historical ASTs or HMO licences and, where applicable, an appropriate statutory declaration from the Seller relating to the continued use of the Property as a HMO;

2. Ensure there are no restrictions on the title preventing or limiting the use of the Property as a HMO (unless an appropriate indemnity policy is put on risk)
Keystone Property Finance Yes. Both property and borrower(s) must be appropriately licensed. Your attention is drawn to the terms of the mortgage offer. If you are not able to confirm this requirement, please refer to Completions Department for instructions.
Landbay Partners Limited Yes. All national regulations, local planning and licencing requirements should be complied with. Please see the details within our mortgage offer.
Landmark Mortgages Limited No
Leeds Building Society Yes you must provide a completed HMO Licence (if applicable) or confirmation from the relevant Council that a licence is not required.
Legal & General Home Finance Ltd No.
LendInvest Yes. All national regulations, local planning and licensing requirements should be complied with. Please see the details within our mortgage offer. Each condition and/or requirement must be satisfied prior to submission of the Certificate of Title
LiveMore Capital No, we do not lend where the property is be let, either in whole or in part.
Lloyds Bank plc pre fixed 20/40 Please contact Mortgage Processing. Please see 1.11.
Lloyds Bank plc pre fixed 50/30/77 Please refer to Mortgage Processing. Please see 1.11a
Lloyds TSB Scotland plc Please refer these cases to Mortgage Processing. Please see 1.11a
M&S Bank We do not lend on properties that are subject to a tenancy
Magellan Homeloans Only on a buy to let basis, all of the requirements specified in the offer must be satisfied prior to the submission of your Certificate of Title
Manchester Building Society Yes.
Refer all such cases to underwriting, if the offer makes no reference to us already being aware of this
Market Harborough Building Society No
Masthaven Bank Yes, on a Buy to Let basis. Maximum 6 bedrooms, single or multiple tenancy agreements accepted, copy of the HMO licence (if applicable) and the property must meet the legal minimum bedroom sizes.
Metro Bank plc No.
ModaMortgages Any property classed as a House in Multiple Occupation (HMO) under the Housing Act 2004 will only be acceptable as security if all conditions relating to HMOs are met.

Where we have assessed the Property as an HMO, you must:

1. Satisfy yourselves that use as an HMO is authorised by either:

a) a valid planning permission,

b) certificate of lawful use or

c) permitted development rights (PDR)

If the Property was converted to and has been used continuously as an HMO under permitted development rights prior to the date of any revocation of PDR following an appropriate Article 4 direction, you must obtain from the Borrower appropriate evidence to demonstrate the continued use of the Property as an HMO prior to the Article 4 direction up to the date of Completion in the form of suitable evidence such as historical ASTs or HMO licences and, where applicable, an appropriate statutory declaration from the Seller relating to the continued use of the Property as an HMO;

2. Ensure there are no restrictions on the title preventing or limiting the use of the Property as an HMO (unless an appropriate indemnity policy is put on risk).
Molo Finance Yes, subject to the following requirements:

- The HMO has a maximum of 12 bedrooms.
- Molo require a licence to be in place on or before completion, where there is no licence in place, please refer as per 1.11a
Monmouthshire Building Society Lending Operations Department
Monmouthshire Building Society
Monmouthshire House
John Frost Square
Newport
NP20 1PX
Mortgage Agency Services No
Mortgage Express Yes, for Further Advances - there must be a licence in place.
Mortgage Express No 2  
MPowered Mortgages Yes. Your attention is drawn however to the terms of the BTL mortgage offer.
National Counties Building Society No.
National Westminster Bank plc No
Nationwide Building Society No. Please note we do need to be made aware that the property is subject to an HMO license on remortgage or further advance applications. In these circumstances, please advise us why the license exists.
Nedbank Private Wealth Ltd Unless we have told you that the property is to be occupied by anyone other than the Borrower/Mortgagor, you must inform us of any such matter.
New Street Mortgages No
NRAM Ltd No
Paragon Buy to Let Mortgages Yes, all of the requirements specified in the offer must be satisfied prior to the submission of your ROT.
Paragon Residential Owner-Occupied Mortgages No.
Paratus AMC Ltd Please refer to your instructions in the mortgage offer. Each condition and/or requirement must be satisfied prior to submission of the Certificate of Title
Parity Trust No
Pepper Money We do not lend on HMO properties
Pepper Money (PUK) No
Perenna No
Platform (a trading name of The Co-operative Bank p.l.c.) No.
Precise Mortgages (Charter Court Financial Services Ltd) Any property classed as a House in Multiple Occupation (HMO) under the Housing Act 2004 will only be acceptable as security if the Mortgage Offer includes a Special Condition headed 'HMO SPECIAL CONDITIONS (ENGLAND & WALES ONLY) and the terms of that special condition are met.

Where we have assessed the Property as a HMO, you must:

1. Satisfy yourselves that use as a HMO is authorised by either:

a) a valid planning permission,

b) certificate of lawful use or

c) permitted development rights (PDR)

If the Property was converted to and has been used continuously as a HMO under permitted development rights prior to the date of any revocation of PDR following an appropriate Article 4 direction, you must obtain from the Borrower appropriate evidence to demonstrate the continued use of the Property as a HMO prior to the Article 4 direction up to the date of Completion in the form of suitable evidence such as historical ASTs or HMO licences and, where applicable, an appropriate statutory declaration from the Seller relating to the continued use of the Property as a HMO;

2. Ensure there are no restrictions on the title preventing or limiting the use of the Property as a HMO (unless an appropriate indemnity policy is put on risk)
Principality Building Society No
Reliance Bank Ltd Yes refer to Commercial Team
Rooftop Mortgages Ltd Please contact the lender.
Saffron Building Society Yes, subject to the requirements specified in the mortgage offer being satisfied prior to the submission of your Certificate of Title.
Sainsbury's Bank No
Santander UK plc Your individual instructions on a particular case will set out our requirements. We do not lend on properties subject to mandatory licensing.
Scottish Building Society No.
Scottish Widows Bank No, but please refer to
New Business Processing
(see 1.11a).
Secure Trust Bank PLC No.
Skipton Building Society We will not accept lettings which would result in multiple occupation requiring a mandatory licence from the Local Authority. Other types of lettings which require a licence are acceptable provided there are no more than 4 occupants. In all cases where a licence for the property is required, you must ensure that the licence is in place on or before completion of the loan.
St James Place Bank Yes, provided construction is supervised by a professional consultant.

We only require this where the property is to be occupied for the first time.
State Bank of India UK Yes, in all cases the, following conditions are to be satisfied:

A. the solicitor must make enquiries with the local authority and report to us if the property requires a licence and if so the category of such licence, namely: mandatory, additional/discretionary or selective ('the Licence');

B. if the property requires a Licence, the solicitor must supply a copy of it to us prior to the request for funds and confirm (after making enquiries with the Licence holder) that all of the conditions to which the Licence is subject have been satisfied. If any conditions remain to be satisfied, the solicitor must report which conditions remain to be satisfied, the reasons why these remain outstanding and the likely timescale for compliance.

C. if you already own the property and it requires a Licence but does not have the benefit of one, the solicitor must report this to us and provide details of the reasons why the property is not licensed. The solicitor must await our further instructions;

D. Where a full HMO Licence and/or Additional Licence and/or Selective Licence is required but it cannot be provided prior to completion, then you will provide evidence that an application has been submitted to the relevant local authority and the relevant fee paid and evidence of the acknowledgement of the application from the local authority before completion; and you will ensure that any works required for the relevant licence to be issued are carried out as soon as practicable, at your own cost and expense, by appropriately qualified and experienced firms in accordance with the relevant Licence requirements of the relevant local authority and provide a copy of the relevant licence as soon as it has been issued and in any event within 6 months of the date of completion.


E. You will provide us (or our valuer) with evidence and details satisfactory to us and our valuer as we (or our valuer) may request regarding compliance with this condition.

F. If the relevant licence is not provided within 6 months of completion then this will constitute a Default and Enforcement event as per Clause 11.

Swansea Building Society Yes, Please contact the lender. at 11/12 Cradock Street, Swansea SA1 3EW. Tel.01792 739100
The Mortgage Business Please refer to The Mortgage Business, PO Box 548, Leeds LS1 1WU. Fax no. 0845 6039009
The Mortgage Lender Limited Yes, but only where the mortgage offer is for a Buy to Let Product specifically referencing this type of property.

Please refer to our Acceptable Tenancies document for full requirements or contact us

completions@themortgagelender.com

Tel: 0344 257 0426
The Mortgage Works No, unless expressly covered within the mortgage offer. If so, HMO licence will be required
The Royal Bank of Scotland plc No.
The Royal Bank of Scotland plc Direct Line Mortgages No.
The Royal Bank of Scotland plc Direct Line One No.
The Royal Bank of Scotland plc First Active No.
The Royal Bank of Scotland plc Natwest one Account No.
The Royal Bank of Scotland plc One Account No.
The Royal Bank of Scotland plc Virgin One No.
The Tipton & Coseley Building Society No.
Together Personal Finance Limited Yes - copy of the HMO licence.
Topaz Finance Ltd No unless the Offer of Advance expressly states this is permitted, See Offer of Advance terms.
TSB Bank plc Please refer these cases to Mortgage Processing. Please see 1.11a
Ulster Bank No.
Vida Homeloans Yes and please refer to the offer for special conditions to be satisfied.
Virgin Money No.
Whistletree (a trading name of TSB Bank plc) No
Yorkshire Bank Home Loans Ltd No.
Yorkshire Building Society If we do lend in these circumstances, the mortgage offer will specify our requirements.
Zephyr Homeloans No unless the Offer of Advance expressly states this is permitted, See Offer of Advance terms.