The buy to let brand of specialist lender, Foundation Home Loans, has announced a new Limited Edition HMO product and a number of price reductions.
Meanwhile, its Solutions by Foundation brand has also introduced selected cuts to product rates.
Buy to Let by Foundation has launched a new five-year fixed rate for HMO borrowers, available up to 75% LTV at a rate of 5.74% with a fixed fee of £4,995. The new product comes with a minimum loan size of £200k.
The lender is also announcing cuts to other F2 products within its range – for clients financing a more specialist property type – with a 25 basis point (bps) price reduction to its five-year HMO fix, with rates starting from 6.14% up to 75% LTV, and 15 bps price reductions to its five-year short-term let fix, with rates starting from 6.44%, also up to 75% LTV.
Solutions by Foundation has also announced price cuts of between 10 to 15 bps. The Solutions by Foundation brand offers broad and specialist criteria, and products for an additional layer of specialist buy-to-let needs, covering multi-occupancy properties, semi-commercial (mixed-use) property and expat borrowers.
The lender has announced:10 bps cuts to its Large HMO and HMO Plus rates, all available with a 2% fee, and with rates starting at 6.49% and 6.34% respectively – also up to 75% LTV; and 20 bps cuts to its multi-unit freehold block rates, again with a 2% fee, and rates starting from 6.24% up to 75% LTV.
The equivalent Expat products have also seen reductions of up to 15 bps and are available with a 2% fee, with rates starting from 6.64% 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.”
