The specialist BTL brand of Foundation Home Loans has launched a new offering for more complex HMO properties.
Solutions by Foundation’s ‘HMO plus’ range are available for properties with up to six occupants or bedrooms and can be used for HMOs that require a commercial valuation, such as a property with multiple kitchens.
Rental cover is offered at the lender’s standard 125% at pay rate for basic-rate tax payers, and 145% for higher-rate tax payers.
“This [new range] 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,” said Tom Jacob, director of product and marketing at Foundation Home Loans.
The Solutions by Foundation brand was launched in early 2024, offering specialist criteria and products, covering multi-occupancy and semi-commercial (mixed-use) property and expat borrowers.
“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,” added Tom.
“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.”
