Foundation Home Loans has made a significant update to its Property Plus range, introducing short-term lets as an eligible asset class and scrapping the £100,000 minimum loan threshold previously required across the range.
The specialist buy-to-let lender, which lends exclusively through intermediaries, said the changes were driven by rising broker demand and growing landlord interest in short-term rental strategies. According to Visit Britain data cited by the lender, the short-term rental sector has expanded by 32% since 2019, reflecting a shift in both tenant and landlord behaviour.
The new ‘STL Plus’ products, available up to 75% loan-to-value, are designed for properties let on a short-term basis, such as those listed on Airbnb or used by contractors and remote workers. Holiday lets and seasonal income properties remain excluded from Foundation’s lending criteria.
STL Plus rates start from 6.89% for both two- and five-year fixed options, with a 2% arrangement fee. Despite the non-traditional use case, valuations will continue to be based on notional buy-to-let rental income as assessed by the valuer, offering a safety net for borrowers in the event of market changes.
Foundation has also reduced pricing across its existing Property Plus and HMO Plus ranges. The Property Plus two-year fix now starts at 6.84% (down 10 basis points), while the five-year fix has been trimmed by 5 basis points to 6.74%. Its Fixed Flex versions, with a higher 2.75% fee, are now priced at 6.74% and 6.59% respectively.
In the HMO Plus category, which covers properties housing up to six tenants or beds, rates have been cut by up to 10 basis points. Two- and five-year fixes now stand at 6.94% and 6.84% respectively, both with a 2% fee.
Removing the £100,000 minimum loan size is intended to support brokers working with clients seeking smaller finance amounts. The lender said the decision followed a consistent stream of high-quality applications across the range and reflects its intention to offer flexible support to a broader spectrum of landlords.
The latest enhancements come just days after Foundation confirmed it had secured £550 million in funding through its Braccan Mortgage Funding 2025-1 deal, adding further capacity for lending growth.
Tom Jacob, director of product and proposition at Foundation Home Loans, said the changes were based on direct engagement with advisers. “We’ve listened to broker feedback and seen first-hand the growing demand for more flexible solutions in the specialist buy-to-let space. Short-term lets are one of the fastest-growing property types, and by formally introducing them into our Property Plus proposition, we’re enabling brokers to serve more landlords with more relevant product options,” he said.
He added that the removal of the loan minimum was “a logical next step” given the lender’s confidence in case quality. “Combined with rate reductions and product simplification, this refresh further strengthens our commitment to a flexible and practical buy-to-let proposition that reflects the real-world needs of advisers and their landlord clients today.”
