Solutions by Foundation has launched a new set of products called ‘HMO Plus’ for properties which are slightly more complex than a normal HMO.

HMO Plus is a specific range of products for HMOs which require a commercial valuation, for example, a property with multiple kitchens. The products are available for properties with up to six occupants or bedrooms.

The lender is launching two new specific HMO Plus products, with both 65% and 75% LTV options.

Two-year fixed-rate HMO Plus products start at 6.99% for 65% LTV and 7.09% for 75% LTV, while the 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 the products is offered at the lender’s standard 125% at pay rate for basic-rate tax payers, and 145% for higher rate tax payers.

The Solutions by Foundation brand was launched at the start of 2024 and 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.

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.”