Summary: Securing an HMO mortgage with bad credit is possible by engaging with specialist lenders who view your application manually, rather than relying solely on automated credit scores. You will typically need a larger deposit (often 25%+) and should be prepared for higher arrangement fees and increased interest rates to compensate the lender for the perceived risk.

Summary: Using loans for HMO investment increases financial exposure. Key risks include higher interest rates on specialist HMO mortgages or bridging loans, strict licensing requirements and associated fines, high tenant turnover (void periods), and the ultimate risk of losing the property if loan repayments are missed.