Thinking about turning your current home into an HMO, but worried lenders will say no?
Our client needed to convert their main residence into a limited company HMO and buy a new residential property with a minimal deposit. It wasn’t going to be straightforward, so they turned to Simmonds Mortgage Services for guidance.
If you’re in a similar situation and need clear advice, contact Simmonds today!
Understanding the challenge
Our client’s situation had many moving parts.
- Firstly, they wanted to convert their current main residence into an HMO and hold it in a limited company SPV
But at the same time…
- They were also looking to purchase a new residential property with a low deposit so they could keep some funds for their investment plans
For context, an SPV (Special Purpose Vehicle) is a limited company set up for specific financial goals, like in this case, where our client wants to hold a single investment property to reduce personal financial risk.
Most lenders don’t like the idea of a main residence being converted into an HMO and prefer borrowers with prior HMO experience. When you add a limited company structure into the mix, the number of available lenders reduces even further. High street banks, in particular, tend to be very cautious in these scenarios.
The client also needed both mortgage applications to work together. Any misstep on one could have affected the other, so timing was key!
Our approach
We started by taking a step back and looking at the full picture rather than treating this as two separate applications.
We took the time to understand the client’s long-term goals, how the limited company would be structured, and how best to position both applications to give them the strongest chance of success. From there, we mapped out a clear strategy that allowed the client to move home while turning their existing property into an investment.
Rather than relying solely on restrictive high-street lending criteria, we approached two different lenders:
- We sourced a specialist HMO mortgage for their SPV property.
- We secured a high-street mortgage for the new residential purchase with just a 5% deposit.
Our client had our full support throughout the process. We communicated with lenders, managed documentation, and always made sure they knew what was happening and why.
The solution
With the right plan and the right lenders in place, everything came together smoothly.
This meant our client could:
- Move home
- Keep their existing property as an HMO investment
- Separate their personal finances from their property investment
- Feel confident that everything was set up correctly
A message from our valued client:
Andrew has been fantastic to work with — very friendly, professional, and always willing to go the extra mile. He’s helped me with both residential and investment property mortgages, and every time the process has been smooth and stress-free.
What really stands out is how clearly Andrew explains everything and how responsive he is to questions, even the more technical ones around company structures and buy-to-let lending. It’s rare to find someone who combines great communication with deep industry knowledge.
I’d highly recommend Andrew and the team to anyone looking for clear, honest, and efficient mortgage advice.
Simmonds Mortgage Services: More Than Just Mortgages
At Simmonds Mortgage Services, we find solutions for even the most challenging mortgage cases. Bad credit, self-employed income, tight deadlines – we specialise in it all.
If you need a mortgage for an investment property, let us help. Contact Simmonds Mortgage Services today, and we’ll help you find the perfect product.