"This allows landlords to consider a much broader range of properties, beyond those which could previously only be valued using a standard valuation"
- Tom Jacob, director of product and marketing at Foundation Home Loans
‘Solutions by Foundation’, the specialist buy-to-let brand of Foundation Home Loans, has launched a new set of products called ‘HMO Plus’ for properties which are slightly more complex than a normal HMO.
HMO Plus is a specific range of products for HMOs which require a commercial valuation, for example, a property with multiple kitchens. The products are available for properties with up to six occupants or bedrooms.
The lender is launching two new specific HMO Plus products, with both 65% and 75% LTV options.
Two-year fixed rate HMO Plus products start from 6.99% at 65% LTV and 7.09% at 75% LTV, while the five-year fixed rate options are available at 6.44% and 6.64% respectively. All products within the HMO Plus range come with a 2% fee.
Rental cover on the products is offered at the lender’s standard 125% at pay rate for basic-rate tax payers and 145% for higher rate tax payers.
The Solutions by Foundation brand was launched at the start of 2024 and offers specialist criteria and products for an additional layer of specialist buy-to-let needs, covering multi-occupancy properties, semi-commercial (mixed-use) property and expat borrowers.
Tom Jacob, director of product and marketing at Foundation Home Loans, said: “We are pleased to be able to offer landlords a brand new range of products, HMO Plus, which gives them the capability to have a commercial valuation on an HMO, up to six occupants/bedrooms. This 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. 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.”
