Foundation Home Loans has launched a new limited edition HMO product and announced several price cuts across its ‘Buy to Let’ and ‘Solutions by Foundation’ brands.
The new 5-year fixed-rate for HMO borrowers is available up to 75% LTV at a rate of 5.74% with a fixed fee of £4,995. This product has a minimum loan size of £200,000.
Additionally, the lender is reducing rates on other F2 products for clients financing specialist property types. This includes a 25 basis point (bps) reduction on its 5-year HMO fix, with rates starting from 6.14% up to 75% LTV, and a 15 bps reduction on its 5-year short-term let fix, with rates starting from 6.44% up to 75% LTV.
‘Solutions by Foundation’, the specialist buy-to-let brand, has also introduced price cuts between 10 to 15 bps. This brand offers a range of products covering multi-occupancy properties, semi-commercial (mixed-use) property, and expat borrowers.
The rate cuts include 10 bps reductions on Large HMO and HMO Plus rates, starting at 6.49% and 6.34% respectively with a 2% fee, up to 75% LTV.
There are also 20 bps reductions on multi-unit freehold block rates, starting from 6.24% with a 2% fee, up to 75% LTV. Equivalent expat products have seen reductions of up to 15 bps, starting from 6.64% with a 2% fee, up to 75% LTV.
Tom Jacob, director of product and marketing at Foundation Home Loans, said: “Whether it’s our Core BTL or Solutions range of products, we continue to both add to our offering and introduce price cuts across the whole sphere of buy-to-let mortgages Foundation offers.
“Today we’re able to launch a limited edition HMO product within the ‘Buy to Let by Foundation’ range, plus a series of price reductions for a number of F2 products, while within our more specialist ‘Solutions’ range we can offer significant price cuts for expat borrowers, and those purchasing or refinancing both HMOs and multi-unit freehold blocks.
“Landlords continue to seek higher rental yield and are increasingly drawn to higher-yielding properties like HMOs and MUFBs, so it’s not surprising we are seeing a growing interest in this part of the market.
“With these cuts landlord borrowers should find an easing of affordability, allowing them to either add to portfolios or refinance existing properties, by securing the loans they require. Tenant demand has not fallen back in the private rental sector, and these new products and price cuts should allow acquisitive landlords to keep adding supply to their portfolios in order to meet the ongoing need for quality rental properties.”
