‘Buy to Let by Foundation’ launches new HMO products for first-time landlords

By Bridging Loan Directory 7th March 2024

‘Buy to Let by Foundation’, the buy-to-let brand of Foundation Home Loans, has today (7^th March 2024) launched two new HMO products specifically for first-time landlords.

‘Buy to Let by Foundation’ define first-time landlords as someone who has not operated a residential buy-to-let property within the last 12 months.

They also stipulate the applicant must currently be an owner-occupier.

The two new products for first-time landlords are within the standard HMO definition – for up to six occupants – and are available within the F2 range – for clients financing a more specialist property type and/or those with some historical blips on their credit rating.

Both products are available up to 75% LTV with the two-year fix starting at 6.84% and the five-year fix starting at 6.49%. Each comes with a 2% fee.

Tom Jacob, Director of Product and Marketing at Foundation Home Loans, said:

“Historically, first-time landlords tended not to begin their property investing journey with more specialist property types, however more recently we have been aware of an increase in demand in this space, no doubt fuelled by a quest for greater rental yield levels, and in order to meet the healthy demand for such tenancies.

We’re therefore very pleased to be offering these new standard HMO products, specifically for first-time landlords, who can benefit from our experience in this space, plus a 75% LTV product with both competitive two- and five-year pricing.

Clearly, HMO properties come with greater responsibilities and requirements than standard rental property types and it’s important advisers play a pivotal role with first-time landlords, helping them understand all that is involved as well as ensuring they have the right finance solution for their purchase needs.”