Buy to Let by Foundation has introduced a limited-edition HMO product and announced several price reductions poised to capture landlord attention.
The BTL brand of specialist lender Foundation Home Loans has launched a five-year fixed rate for HMO borrowers, available up to 75% LTV at 5.74% with a fixed fee of £4,995 and a minimum loan size of £200,000.
The lender is also announcing cuts to other F2 products for clients financing a more specialist property type.
This includes a 25bps drop to its five-year HMO fix, with rates starting from 6.14% up to 75% LTV, and 15bps price reduction to its five-year short-term let fix, with rates starting from 6.44%, up to 75% LTV.
The ‘Solutions by Foundation’ brand, which covers specialist BTL needs such as expat borrowers and multi-occupancy properties, has also introduced price cuts of between 10 and 15bps.
The lender has made a 10bps cut to its large HMO and HMO plus rates, all available with a 2% fee, and with rates starting at 6.49% and 6.34%, respectively, and up to 75% LTV.
Solution has also dropped its multi-unit freehold block rates by 20 bps, now starting from 6.24% up to 75% LTV, with a 2% fee.
The equivalent expat products have also seen reductions of up to 15 bps and are available with a 2% fee, with rates starting from 6.64% up to 75% LTV.
“Whether it’s our core BTL or solutions range of products, we continue to both add to our offering and introduce price cuts across the whole sphere of BTL mortgages Foundation offers,” said Tom Jacob, director of product and marketing at Foundation Home Loans.
“Today we’re able to launch a limited-edition HMO product within the ‘Buy to Let by Foundation’ range, plus a series of price reductions for a number of F2 products, while within our more specialist ‘Solutions’ range we can offer significant price cuts for expat borrowers and those purchasing or refinancing both HMOs and multi-unit freehold blocks.
“Landlords continue to seek higher rental yield and are increasingly drawn to higher-yielding properties like HMOs and MUFBs, so it’s not surprising we are seeing a growing interest in this part of the market.
“With these cuts, landlord borrowers should find an easing of affordability, allowing them to either add to portfolios or refinance existing properties by securing the loans they require.
“Tenant demand has not fallen back in the private rental sector, and these new products and price cuts should allow acquisitive landlords to keep adding supply to their portfolios in order to meet the ongoing need for quality rental properties.”
