Foundation Home Loans unveiled a short term let product, as part of its buy-to-let range. It is available exclusively through Legal & General’s Mortgage Club.
The product is available to individuals and limited companies and is suitable for landlords looking to let out their properties on a short-term basis, without the need for an Assured Shorthold Tenancy (AST) agreement.
Two- and five-year fixed rates start from 2.99% and are available up to 75% loan-to-value (LTV) for limited companies and individuals, and there is no minimum income required.
For this product, Foundation Home Loan’s standard product criteria and existing Interest Cover Ratios apply, based on a standard rental assessment.
Foundation Home Loans commercial director Andrew Ferguson (pictured) said: “Considering the growing trend for AirBnB-type offerings, our new short term let product will provide landlords with increased flexibility as we head into the summer season.
“However, there is equal demand for short lets from relocating corporate tenants, people who are testing out a residential area before buying, contract workers, and homeowners needing temporary accommodation while undergoing renovations.”
Meanwhile, Shawbrook has released a lending for refurbishment costs option on its short-term loans, allowing applicants to borrow up to 100% of the refurbishment costs on a single, larger facility.
The option is initially available via a limited panel in advance of a potential wider market launch later in the year.
The loan may not exceed either 85% LTV against the lower of the day one purchase price/ value, or 70% of gross development value (GDV) or after works value (whichever is lower).
All funds will be advanced to the borrower on day one, no quantity surveyor is required, with an interim inspection at the end of month three.
The deal is available on light refurbishment projects across residential and semi-commercial security on its existing Shawbrook STL1 and STL2 products.
It is priced on a loading basis with 0.10% added to the standard 75% LTV margin. A rate of 0.80% per month is available on single lets, multi-units and houses in multiple occupation (HMOs), with 0.91% per month available across semi-commercial security.
Shawbrook Commercial Mortgages sales director Emma Cox said: “The ability to borrow 100% of refurbishment costs under one facility can be critical for investors looking to add value and develop their portfolios, and we are delighted to be able to support this activity.”