Foundation Home Loans launches new HMO products

Foundation Home Loans launches new HMO products

9:24 AM, 1st March 2024, About 2 months ago

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Foundation Home Loans, the specialist lender for intermediaries, has unveiled two new products for HMO landlords with fee assistance.

The products are part of its buy to let brand, Buy to Let by Foundation.

They have a 1.25% fee, no application fee and a free standard valuation and offer up to 75% LTV, with a two-year fixed rate of 6.69% and a five-year fixed rate of 6.39%.

‘Brand new, fee-assisted HMO products’

Foundation’s director of product and marketing, Tom Jacob, said: “We’re very pleased to be able to launch these brand new, fee-assisted HMO products within Buy to Let by Foundation, particularly as they also come with no application fee and one free standard valuation.

“As advisers with HMO landlord clients will know, valuations for these types of properties can be expensive so this should be a considerable saving for clients from the outset.”

He added: “We continue to offer a strong range of both standard buy to let products while our specials range for landlords remains at the same pricing as when we launched them in January, offering highly competitive rates for those clients seeking to either refinance their properties or purchase in order to add to their portfolios.”

New standard buy to let products for F1 clients

The lender has also added new standard buy to let products for F1 clients, who have a near-perfect credit record.

These products have a 1.5% fee and fixed rates starting from 6.39% for two years and 5.94% for five years.

Also, Foundation has made available Green ABC+ products for F1 and F2 clients, who want to improve the energy efficiency of their properties.

The products have a five-year fixed rate of 5.99% for F1 clients and 6.14% for F2 clients.

The rates on the lender’s buy to let ‘Specials Range’, which includes fee-assisted products and HMO products, remain the same.

YBS Commercial Mortgages has lowered its stress rates

Meanwhile, YBS Commercial Mortgages has lowered its stress rates for its commercial buy to let products, following broker feedback.

The lender will now apply a 125% ICR at the interest rate on the loan, instead of the interest rate plus 0.3%.

This will, it says, increase the borrowing capacity of landlords, subject to a 75% LTV limit.

YBS points out that this will help landlords in areas where the rent is low compared to the property value and take into account the expenses of landlords.

The lender estimates that for every £1m of assets, with a 4% yield and a five-year fixed rate of 5.60%, landlords can borrow about 5.5% or £30,000 more.


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