Two- and five-year fixed rates start from 6.99% and 6.44%, respectively
Intermediary-only specialist lender Foundation Home Loans has introduced a new set of products under its Solutions by Foundation brand.
The new HMO Plus products are tailored for houses in multiple occupation (HMOs) that require commercial valuations, such as properties with multiple kitchens.
The HMO Plus range targets properties with up to six occupants or bedrooms. Two specific products are available, offering 65% and 75% loan-to-value (LTV) options.
Two-year fixed rate HMO Plus products start at 6.99% for 65% LTV and 7.09% for 75% LTV. The five-year fixed rate options begin at 6.44% for 65% LTV and 6.64% for 75% LTV. All products in the HMO Plus range come with a 2% fee.
Rental cover is offered at the lender’s standard 125% at pay rate for basic-rate taxpayers and 145% for higher-rate taxpayers.
The Solutions by Foundation brand, launched in early 2024, provides products and criteria for specialist buy-to-let needs, including multi-occupancy properties, semi-commercial properties, and expat borrowers.
“We are pleased to be able to offer landlords a brand new range of products, HMO Plus, which gives them the capability to have a commercial valuation on an HMO, up to six occupants/bedrooms,” said Tom Jacob (pictured), director of product and marketing at Foundation Home Loans. “This allows landlords to consider a much broader range of properties, beyond those which could previously only be valued using a standard valuation which meant they were often restricted to those which could be converted back to a family home for resale if necessary.
“Landlords are diversifying much more now, which means an increased appetite for a range of different property types; we are pleased to say with Solutions by Foundation, we are now able to broaden our criteria to meet their needs. This allows us to offer advisers a finance route for their landlord clients who have a real appetite to diversify into more complex HMO buildings as many are doing in order to ensure they maximise rental yield and profitability on their portfolio properties.”
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