Foundation increases loan size for HMOs

  • 05/06/2018
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Foundation increases loan size for HMOs
Foundation Home Loans has increased its maximum loan size and loan to value (LTV) to £1m and 65% for both individuals and limited companies.



The HMO product offers both two and five-year fixed rates and no pricing differential for limited companies.

Rental stress calculations are the same as its other buy-to-let products, for example 125% times pay rate on a five-year fixed rate for limited companies.

Foundation Home Loans has also split the product into two categories: HMO or multi-unit properties with up to six bedrooms/units will be offered rates starting from 2.99% and large HMOs of up to eight bedrooms or multi-unit blocks of up to 10 units will carry a new valuation fee scale and offer rates starting from 3.09%.


HMO range feedback

Andrew Ferguson, commercial director, Foundation Home Loans, said: “Feedback from brokers was very positive about our HMO range, but there was demand for a larger loan size. So, we have listened and delivered. Our HMO range is very competitive and the ICRs are no different to our other products.”

In October last year, Foundation recruited Andrew Ferguson as commercial director with responsibility for the company’s sales and distribution channels. Ferguson helped launch Axis and was previously head of sales and distribution at Kent Reliance.

In addition Emma Payne took up the role of head of sales, after roles at Mortgage Brain and Lloyds Banking Group and Ian May, ex-Capita Mortgage Services, became a regional account manager.


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