Buy to let lenders broaden options with new criteria and lower rates

Two buy to let lenders have announced changes designed to give brokers and landlords more flexibility in the BTL mortgage market.

Foundation Home Loans has widened its criteria to include single household properties rented to Housing Associations and Local Authorities.

The move is aimed at supporting advisers and their landlord clients at a time when demand for affordable homes is rising.

According to the lender, renting through these organisations offers investors reliable income, fewer void periods and added security through provider-led tenant checks and inspections.

Lease terms of up to five years can also offer longer-term cashflow stability.

Open to individual and limited company landlords

The new criteria will apply to both individual and limited company landlords in England, Wales and Scotland, provided the Housing Association or Local Authority is registered with the relevant regulator and not classed as charitable.

However, lettings such as HMOs, supported living, hostels and care homes remain excluded.

Loans will be capped at £3m, with rents assessed against either market or contractual levels.

Foundation’s director of product and marketing, Tom Jacob, said: “Accepting lettings to Housing Associations and Local Authority tenants is a natural step that supports landlords in achieving secure, predictable returns, while also helping to meet the critical demand for affordable housing.”

TML cuts rates on its BTL range

Meanwhile, The Mortgage Lender has announced cuts across its buy to let range, including a 5bps reduction on five-year fixed products for standard properties with a fee and a 10bps cut for HMO and multi-unit blocks.

The changes are designed to give landlords greater access to fixed rates while continuing to provide consistency and support for advisers.

TML’s chief commercial officer, Steve Griffiths, said: “These latest rate reductions across our buy to let ranges allows us to provide even more options for a wider range of mortgage customers.”

For assistance with any type of buy to let (BTL), property or commercial finance please complete the contact form below: