If you have a licensable HMO, your choice of mortgage lender will be more restricted. However, there are lenders who will play ball as two mortgage brokers revealed, writes David Lawrenson.

First, a quick reminder of the rules on houses in multiple occupation (HMOs).

An HMO is defined as being where three or more people - of which at least two are unrelated - share a self-contained property.

The 2004 Housing Act states that some of these HMOs will require a license. Any property with three or more storeys and more than five tenants will require a license for both the property and the landlord.

Additionally, local authorities have the power to extend licensing to smaller houses in multiple occupation, if they can prove that a need exists locally.