Foundation launches new large HMO and short-term let products

Foundation has launched new specialist products covering both large HMO and short-term let, and has also cut fixed rates on a number of standard, HMO and MUFB products.

The new large HMO products include a two-year fixed rate at 5.29% with a 3% fee and a five-year fix at 5.99% with a 4% fee. 

The short-term let products include a two-year fix at 5.19% with a 3% fee and a five-year fix at 5.89% with a 4% fee.

In addition, Foundation has announced price cuts across a number of specialist and standard fixed rates.

A standard HMO two-year fix with a 3% fee is down by 0.25% to 4.99% and a five-year fix with a 4% fee has reduced by 0.10% to 5.69%. MUFB fixes have also been cut - the two-year fix with a 3% fee from 5.34% to 5.09% and the five-year fix with a 4% fee from 5.89% to 5.79%. 

In its standard buy-to-let range for F1 borrowers - those with an almost clean credit history - its two-year fix (3% fee) has been cut to 4.89% and its five-year fix (4% fee) to 5.59%.

Foundation has also reintroduced its F1 first-time buyer/first-time landlord product. This is a five-year fix which comes with a rate of 6.54% and has a 1.5% fee. 

Grant Hendry, director of sales at Foundation, commented: “With markets continuing to ease over the past few days, we’re maintaining our ongoing commitment to cutting rates where possible, and also launching new products specifically across higher-yielding property types, such as large HMOs and short-term lets.

“Landlord borrowers continue to seek product options for these types of properties as they look for improved yield, so we’re pleased to be able to offer both two and five-year fixed rate options. 

“At the same time, we’re able to introduce our product specifically for new landlords who are just starting out on their investment journey and who don’t own a property. We try not to forget that while established landlords make up the bulk of the market, there are those who need finance in order to begin investment, and this product is designed to do this.

“Following the changes we introduced last week, we believe we’re continuing to offer a variety of options to help brokers and their landlord clients. 

“We’ll continue to monitor the market situation and act both appropriately and responsibly, while maintaining the depth and breadth of our overall buy-to-let offering.”