Foundation Home Loans, the intermediary-only specialist lender, has launched new buy-to-let standard HMO, Large HMO, as well as multi-unit blocks (MUB) products for exclusive use by its major packager partners.
The products are both two-year variable offerings and priced at 3.34% up to 65% LTV or 3.69% up to 75% LTV for standard HMOs. For Large HMO/MUB – HMOs to a maximum of eight bedrooms; all MUBS to a maximum of 10 units – the rate is 3.44% up to 65% LTV or 3.79% up to 75% LTV.
The new products are for the exclusive and sole use of Foundation’s packager partners and are available immediately. Foundation says these products complement its other two-year discount buy-to-let products which also come with no ERCs.
The launch of the packager exclusives follows a number of changes across Foundation’s wider buy-to-let product range this month including: increases to LTV bands – from 60% to 65% LTV and 70% to 75% LTV; rate cuts of up to 50 basis points; and the introduction of a new five-year ‘fixed fee product’ for F1 borrowers.
Jeff Knight, Director of Marketing at Foundation Home Loans, said: “We’re in constant dialogue with our packager partners and will seek to respond quickly where possible to present solutions for the demand they are seeing in the market.
“That being the case, we’re able to launch these exclusive products for packagers which provide further product options for landlord borrowers seeking either standard HMO or large HMO/MUB finance.
“We’re also conscious that the circumstances for landlord borrowers during 2020 and, for the foreseeable future, might be very different to what they could be in 12-18 months’ time. This is why these variable products come with no ERCs which will allow landlord borrowers, should things change in the future, to potentially remortgage at a later date with no charges to pay.
“We’ll be monitoring take-up of these products closely and would hope that, if they are seeing strong demand, we can then roll them out to the wider market.”
Phil Jay, Director at Complete FS, commented: “It’s testament to the commitment of Foundation that, despite market uncertainty, they listen to the packager community and have delivered quality products. Lending on HMO & MUBs with no redemption penalties provides greater flexibility to landlords for when the specialist market returns to some normality.”