Foundation Home Loans has launched new buy-to-let products for large HMOs and short-term lets, while cutting rates across parts of its standard landlord range.
The specialist lender said the new range targets two areas of the buy-to-let market where landlords are seeking higher yields, with both two-year and five-year fixed-rate options now available.
Its new large HMO products comprise a two-year fixed-rate at 5.29% with a 3% fee, and a five-year fixed-rate at 5.99% with a 4% fee.
For short-term lets, Foundation has launched a two-year fixed-rate at 5.19% with a 3% fee, and a five-year fixed-rate at 5.89% with a 4% fee.
Alongside the new launches, Foundation has reduced pricing on a number of standard, standard HMO and multi-unit freehold block products.
Within its standard HMO range, the lender has cut its two-year fixed-rate with a 3% fee by 0.25%, from 5.24% to 4.99%. Its five-year fixed-rate with a 4% fee has been reduced by 0.10%, from 5.79% to 5.69%.
Rates have also fallen on MUFB products. The two-year fixed-rate with a 3% fee has been reduced from 5.34% to 5.09%, while the five-year fixed-rate with a 4% fee has been cut from 5.89% to 5.79%.
In its standard buy-to-let range for F1 borrowers, described as those with an almost clean credit history, Foundation has cut its two-year fixed-rate with a 3% fee to 4.89% and its five-year fixed-rate with a 4% fee to 5.59%.
The lender has also reintroduced its F1 first-time buyer/first-time landlord product, aimed at borrowers taking their first step into property investment. The product is a five-year fixed-rate priced at 6.54% with a 1.5% fee.
The changes come a week after Foundation launched limited edition residential remortgage products and made other cuts across its residential and buy-to-let mortgage ranges.
Grant Hendry (pictured), director of sales at Foundation, said: “With markets continuing to ease over the past few days, we’re maintaining our ongoing commitment to cutting rates where possible, and also launching new products specifically across higher-yielding property types, such as Large HMOs and Short Term Lets.
“Landlord borrowers continue to seek product options for these types of properties as they look for improved yield, so we’re pleased to be able to offer both two- and five-year fixed-rate options.
“At the same time, we’re able to introduce our product specifically for new landlords who are just starting out on their investment journey and who don’t own a property. We try not to forget that while established landlords make up the bulk of the market, there are those who need finance in order to begin investment, and this product is designed to do this.
“Following the changes we introduced last week, we believe we’re continuing to offer a variety of options to help brokers and their landlord clients.
“We’ll continue to monitor the market situation and act both appropriately and responsibly, while maintaining the depth and breadth of our overall buy-to-let offering.”
