Newly launched products are available up to 75% LTV ratios, with two- and five-year options
Foundation Home Loans, through its buy-to-let brand Buy to Let by Foundation, has introduced two new house in multiple occupation (HMO) mortgage products aimed at individuals stepping into the landlord market for the first time.
The newly launched mortgage options offer up to 75% loan-to-value (LTV) ratios, with two- and five-year fixes that have starting rates of 6.84% and 6.49% respectively. Both options come with a 2% product fee.
Targeted at landlords looking to accommodate up to six tenants, these products fall within the lender’s F2 range, which caters to clients seeking to finance properties considered more specialist in nature or to those who have minor credit issues in their history.
The products are designed to support first-time landlords, defined by the company as those who have not owned a buy-to-let property in the past year and are currently living in their own home.
The launch of these products, Foundation said, reflects its commitment to facilitating entry into the buy-to-let sector for new landlords, despite potential challenges in credit history or lack of prior landlord experience.
The specialist lender also recently launched a couple of HMO fee-assisted products.
“Historically, first-time landlords tended not to begin their property investing journey with more specialist property types,” said Tom Jacob (pictured), director of product and marketing at Foundation Home Loans. “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.”
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