Solutions by Foundation launches HMO Plus products

Solutions by Foundation, the specialist BTL brand of Foundation Home Loans, has introduced a new product line called ‘HMO Plus’.

It is aimed at landlords seeking financing for HMOs requiring commercial valuations, such as a property with multiple kitchens.

HMO Plus caters to HMOs with up to six occupants/bedrooms that fall outside the scope of standard valuations, often used for properties that can be easily converted back to single-family homes.

‘Consider a much broader range of properties’

The lender’s director of product and marketing, Tom Jacob, said: “HMO Plus 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.”

He adds: “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.”

Two specific HMO Plus products

There are two specific HMO Plus products, with both 65% and 75% LTV options.

• The two-year fixed-rate products start at 6.99% for 65% LTV, and 7.09% for 75% LTV.
• 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 is at the lender’s standard 125% at the pay rate for basic rate taxpayers, and 145% for higher rate taxpayers.

Landlords with a less-than-perfect credit history

Meanwhile, Buckinghamshire Building Society is extending a lifeline to landlords with a less-than-perfect credit history.

Its new buy to let mortgage caters to those with past financial missteps, opening doors to property investment opportunities.

The mortgage has a rate of 6.39% for loans up to £500,000 and with a maximum loan-to-value of 75%.

There’s no application fee, but a one-time product fee of £1,195 applies.

It’s available to both individual landlords and limited companies looking to build a BTL portfolio of up to three properties.

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