BTL lenders offer new mortgage options and rate cuts

Foundation Home Loans, MT Finance and Molo have announced enhancements designed to meet the evolving demands of landlords and intermediaries, by introducing new products, flexible criteria and competitive rate reductions.

Foundation has expanded its Property Plus range to include short-term lets (STL), such as properties listed on Airbnb or used by contractors and remote workers.

This move responds to a 32% surge in the short-term rental market since 2019, as reported by Visit Britain.

The new STL Plus range offers two- and five-year fixed-rate options up to 75% loan-to-value (LTV), with rates starting at 6.89% and a 2% fee.

Properties will be valued based on potential buy to let rental income, providing borrowers with flexibility. Holiday-only and seasonal lets, however, are excluded.

Property Plus and HMO Plus changes

Foundation has also lowered rates across its Property Plus and HMO Plus ranges, with two-year fixed rates now at 6.84% (down 0.10%) and five-year fixed rates at 6.74% (down 0.05%) for Property Plus, both with a 2% fee.

HMO Plus rates for two- and five-year fixes are now 6.94% and 6.84%, respectively.

The lender has also eliminated its £100,000 minimum loan size threshold across the Property Plus range, pointing to the high quality of applications received.

Foundation’s director of product and proposition, Tom Jacob, said: “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.”

MT Finance offers a semi-commercial product

MT Finance has revamped its large Multi-Unit Freehold Block (MUFB) mortgage criteria to better cater to investors in larger multi-unit properties.

Alongside this, the lender has introduced a new semi-commercial mortgage product, tailored for properties combining residential and commercial uses.

This offering, it says, provides competitive rates and adaptable criteria to support varied investment strategies.

Marylen Edwards, the lender’s director of mortgages, said: “We are excited to introduce more flexible criteria for our Large MUFB product and to expand our buy to let offering with the launch of our new semi-commercial product.

“These developments are a direct result of our ongoing dialogue with intermediaries and our commitment to providing solutions that meet the evolving needs of the buy to let market.”

Molo reduces non-UK resident BTL rates

Molo, catering to both UK and international clients, has cut rates by 30 basis points for its non-UK resident buy to let range.

Two-year fixed rates now start at 7.44%, and five-year fixed rates begin at 7.24%, available to individuals and limited companies from more than 100 countries, including China, Hong Kong, Singapore and EU nations.

The lender’s flexible criteria allow assessments based on projected rental income or personal income, supporting purchases and remortgages up to 85% LTV in England and Wales.

Specialist cases like HMOs, MUFBs and new builds are also covered with an Overpayment Reserve Account to reduce interest costs.

Rates for UK residents and expats remain unchanged, starting at 2.83% and 5.24%, respectively.

Molo’s distribution director, Martin Sims, said: “Our latest rate reductions sharpen our non-resident pricing, offering greater affordability and flexible options to assist overseas investors looking to access or grow their presence in the UK BTL market.”

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