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Foundation raises buy-to-let rates and expands HMO range

  • 09/03/2018
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Foundation raises buy-to-let rates and expands HMO range
Foundation Home Loans has raised rates for the majority of its buy-to-let (BTL) mortgages, while adding to the houses in multiple occupation (HMO) product range with three-year fixed products.


The majority of Foundation’s BTL mortgage rates have been increased, however the specialist lender has declined to confirm by how much.

A spokesperson for Foundation said that all product details are currently listed on the Foundation site, but the size of the updates compared to prior prices “aren’t available to share in the public domain”.

Nevertheless, Foundation said that the increases were made in response to recent SWAP rate changes, following the Bank of England’s indication of earlier-than-expected rise in interest rates.

Jeff Knight (pictured), director of marketing at Foundation commented: “With swap rates moving upwards, repricing our buy-to-let range was absolutely the right thing to do.

“Intermediaries will be pleased to know our buy-to-let products remain competitive for portfolio and non-portfolio landlords. ”


Widened range

In addition to the rate changes, new HMO products have been introduced.

The products include:

  • A three-year fixed rate deal at 3.29% and 65% loan-to-value (LTV), with a 1.5% arrangement fee.
  • A three-year fixed rate deal at 3.74% and 75% LTV, also with a 1.5% arrangement fee.

All products are available to portfolio and non-portfolio landlords buying as individuals or as a limited company.

Both new HMO products have rental calculations for limited companies at 125% and 5.5%, and 145% and 5.5% for individuals.

Knight added:  “At the same time [as the rate increases], we took the opportunity to widen our HMO range which is becoming increasingly popular since launching in August last year.”

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