The lender has expanded its green mortgage range to include large HMOs, which it defines as up to eight bedrooms, and MUBs of up to 10 units.
The large HMO and MUB product available up to 75 per cent loan to value (LTV) and is fixed at 4.39 per cent for five years. It comes with a 1.25 per cent fee, one free standard valuation and no application fee on both purchases and remortgages of properties with an energy performance certificate (EPC) of C or above.
A green product for standard properties in the F2 range, which is aimed at applicants with some historical credit blips, is available up to 75 per cent LTV, fixed at 4.24 per cent for five years. It also comes with a 1.25 per cent fee, one free standard valuation and no application fee for both purchases and remortgages of properties with an EPC of C or above.
The product fee on the large loan product in FHL’s F1 tier, which is for clients who just fall outside mainstream criteria, has been halved to one percent.
The large loan product is now priced at 3.99 per cent fixed for five years and available for maximum loans of £2m up to 65 per cent LTV.
As with all Foundation’s green mortgage range, the green large HMO and MUB product and the green product are both eligible for ‘early remortgage’ after purchase, as opposed to a six-month wait. This feature is specifically designed to help those landlords who may have carried out improvements on the properties to raise the EPC above a level C.
The rental cover for five-year fixed rates is calculated at pay rate, and stress tested at 125 per cent for limited companies and basic rate tax payers, and 145 per cent for other landlord types.