Will your HMO deal recycle its capital?
Enter your project below and see instantly how it stacks up under two exit valuations — an optimistic investment figure and a stressed lender one — before you commit. No account needed: the numbers update live as you type, and nothing is shared unless you send us an enquiry.
Overview
Acquisition & development
Stamp duty, legal, survey, broker fees
Conversion, loft, extension, fittings
Underlying vacant-possession value
Income
Operating expenses: management, maintenance, insurance, voids
Valuation & exit assumptions
Optimistic commercial basis
Stressed market yield (cap rate)
Where is the property? Find your county’s average yield
Indicative county averages for standard lettings, researched September 2026 — HMOs often achieve more.
Not sure what local area yield to use? See our guide
Local market yields vary widely by town and property type, so research comparable room rents and recent HMO sales in the area before entering a figure. As a general guide only:
- Typical UK HMO investment yields generally sit in the mid-to-high single digits, often higher than single-let yields in the same street.
- Higher-value southern towns and prime London usually produce lower percentage yields; cheaper northern and Midlands towns often higher.
- Lenders usually stress-test well above your target — setting the stress rate 1–2% higher than your target is a sensible reality check.
These are general guides only — actual local yields may differ materially, and a lender's valuer will apply their own assessment.
Yield comparison
Target investment yield vs. conservative stressed yield
Feasibility model only. The verdict weighs the refinance advance your deal supports at the target yield against the same deal stressed at the lender stress yield, versus your total project cost. If you used a county average yield, that figure is an indicative market average for standard lettings — HMOs often achieve more, so always check comparable local room rents before relying on it. This is not a lender's valuation — a valuer may apply bricks-and-mortar or capped investment methodology.
Mortgage321 specialises in HMO and buy-to-let finance, including limited company and portfolio lending. Send your deal figures across and a qualified, FCA-regulated adviser will review the case with you — free initial consultation, no obligation.
Important disclaimer
This appraisal has been prepared by Mortgage321 as a preliminary feasibility modelling tool only. It is provided for general information and illustrative purposes and does not constitute, and should not be relied upon as, legal, financial, investment, tax or mortgage advice, a recommendation to proceed, an offer of finance, a valuation, a survey, or a guarantee of any outcome. All figures, yields, rents, costs and valuations are estimates based on the assumptions entered by the user and are subject to change. No warranty, representation or undertaking is given as to the accuracy, completeness or reliability of any calculation, output or scenario, and Mortgage321 accepts no responsibility for any errors, omissions or assumptions howsoever arising. Property investment involves significant risk. Rental income, voids, operating costs, interest rates, planning and licensing, market conditions and other variables may differ materially from those modelled. The value of an investment property and the amount a lender is willing to advance are determined independently by a qualified, RICS-registered valuer appointed by the lender, and that valuation may be lower (including materially lower) than any figure shown here. A lender will apply its own stress tests, affordability criteria, loan-to-value limits and underwriting standards, which may reduce or prevent refinancing, and no refinance figure shown should be taken as an indication that any loan will be offered or approved. Mortgage321 gives no undertaking that any finance, refinance or exit will be available, or that capital will be recycled, repaid or returned. Any reliance placed on this appraisal is strictly at the user's own risk. To the fullest extent permitted by law, Mortgage321, its directors, employees, agents and affiliates exclude all liability for any loss, damage, cost or expense (including, without limitation, direct, indirect, consequential or financial loss, capital left in a deal, a down-valuation, a failed or delayed refinance, or any adverse investment outcome) arising from or connected with the use of, or reliance upon, this appraisal, whether in contract, tort (including negligence), breach of statutory duty or otherwise. Users should obtain independent professional advice from a suitably qualified mortgage adviser, surveyor, valuer, solicitor and accountant before making any investment, finance or refinance decision. This statement does not affect any statutory rights that cannot be excluded.