‘Solutions by Foundation’, the specialist buy-to-let brand of Foundation Home Loans, has launched a new set of products called ‘HMO Plus’ for properties slightly more complex than a normal HMO.
HMO Plus is designed for HMOs that require a commercial valuation, such as properties with multiple kitchens. These products are available for properties with up to six occupants or bedrooms.
The lender is offering two new HMO Plus products with both 65% and 75% LTV options, available within ‘Solutions by Foundation.’ Two-year fixed-rate HMO Plus products start at 6.99% for 65% LTV and 7.09% for 75% LTV, while five-year fixed-rate options start at 6.44% for 65% LTV and 6.64% for 75% LTV. All products within the HMO Plus range come with a 2% fee.
Rental cover on these products is provided 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 at the start of 2024, offers broad and specialist criteria and products for additional specialist buy-to-let needs, covering multi-occupancy properties, semi-commercial (mixed-use) property, and expat borrowers.
Tom Jacob, director of product and marketing at Foundation Home Loans, said: “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. 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.”
