Buy to Let by Foundation launches new HMO products for first-time landlords

Buy to Let by Foundation, the BTL brand of Foundation Home Loans, has unveiled two innovative HMO products tailored specifically for first-time landlords.

The criteria for first-time landlords, as defined by the lender, include individuals who have not managed a residential buy to let property in the past 12 months.

Also, applicants must currently be owner-occupiers.

‘Begin their property investing journey’

FHL’s director of product and marketing, Tom Jacob, said: “Historically, first-time landlords tended not to begin their property investing journey with more specialist property types.

“However more recently we have been aware of an increase in demand in this space, no doubt fuelled by a quest for greater rental yield levels, and in order to meet the healthy demand for such tenancies.”

He says that first-time landlords can benefit from FHL’s experience and get access to a 75% LTV product with competitive two- and five-year pricing.

Mr Jacob added: “Clearly, HMO properties come with greater responsibilities and requirements than standard rental property types and it’s important advisers play a pivotal role with first-time landlords, helping them understand all that is involved as well as ensuring they have the right finance solution for their purchase needs.”

Products cater to the standard HMO definition

These newly introduced products cater to the standard HMO definition, accommodating up to six occupants.

They fall within the F2 range, designed for clients seeking financing for more specialised property types or those with minor historical credit issues.

Key features of the products include:

• Up to 75% LTV (Loan-to-Value)
• Two-year fixed rate starting at 6.84%
• Five-year fixed rate starting at 6.49%
• 2% fee.

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