‘Buy to Let by Foundation’, the dedicated buy-to-let brand under Foundation Home Loans, has rolled out a new offering aimed specifically at those dipping their toes into the landlord pool for the first time. Recognising a gap in the market, Foundation Home Loans is targeting individuals who’ve yet to manage a buy-to-let property in the past year and currently live in the property they own.
Understanding the complexity and the special attention that House in Multiple Occupation (HMO) properties demand, these newly launched products cater to a specific group: first-time landlords. To qualify, one must not have been involved in renting out a residential property in the last 12 months and should be living in their own home.
What’s on Offer?
The focus of these products lies within the standard definition of an HMO, accommodating up to six tenants. Aimed at properties that fall slightly off the beaten path—be it because of their unique nature or a landlord’s less-than-perfect credit history—these options are part of the F2 range. Eligible landlords can look forward to borrowing up to 75% of the property’s value. The products come in two flavors: a 2-year fixed-rate mortgage starting at 6.84% and a 5-year counterpart beginning at 6.49%, each carrying a 2% fee.
Insight from the Inside
Tom Jacob, the 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 2- and 5-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.”