FHL enhances Property Plus range with short-term lets and no minimum loan size

Foundation Home Loans has announced a series of enhancements to its Property Plus range, including the acceptance of short-term lets (STL), rate reductions across the existing Plus range, and the removal of its £100,000 minimum loan size threshold.

Foundation’s new short-term let Plus range has been introduced in response to greater landlord interest in the short-term rental market – a segment that has grown by 32% since 2019, according to Visit Britain.

The new STL Plus products are aimed at properties being let on a short-term basis, such as through platforms like Airbnb, or for use by contractors, tradespeople and remote workers seeking flexible and cost-effective accommodation.

Foundation Home Loans said these properties will continue to be valued based on their potential buy-to-let rental income, confirmed by the valuer, ensuring flexibility and a fallback option for borrowers. The lender has confirmed holiday income-only and seasonal lets will remain outside of scope.

The new STL Plus rates includes both two and five-year fixed rate options starting from 6.89%, available to up 75% LTV with a 2% fee. 

The lender is also refreshing its existing Property Plus and HMO Plus – available up to a maximum of six occupants/beds - product sets.

A Property Plus two-year fixed rate has reduced by 0.10%, down to 6.84% with a 2% fee, while the five-year fix is down by 0.05% to 6.74%.

Property Plus two and five-year Fixed Flex options now have rates of 6.74% and 6.59% respectively, with a 2.75% fee. 

HMO Plus two and five-year fixes with a 2% fee have reduced by up to 0.10%, with rates at 6.94% and 6.84% respectively. 

Foundation Home Loans has also announced the removal of its £100,000 minimum loan size on Property Plus products. It said this decision was made following consistent strong quality cases being received across the Property Plus range.

Tom Jacob, director of product and proposition at Foundation Home Loans, said: “We’ve listened to broker feedback and seen first-hand the growing demand for more flexible solutions in the specialist buy-to-let space. Short-term lets are one of the fastest-growing property types, and by formally introducing them into our Property Plus proposition, we’re enabling brokers to serve more landlords with more relevant product options.

“Removing the £100,000 minimum loan size across all Plus products was also a logical next step – we’re confident in the quality of cases we receive and want to ensure advisers can offer competitive solutions to clients across the full loan-size spectrum.

“Combined with rate reductions and product simplification, this refresh further strengthens our commitment to a flexible and practical buy-to-let proposition that reflects the real-world needs of advisers and their landlord clients today.”