Solutions by Foundation releases HMO plus range

  • 13/06/2024
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Solutions by Foundation releases HMO plus range
The specialist buy-to-let (BTL) brand of Foundation Home Loans, Solutions by Foundation, has brought out a house in multiple occupation (HMO) range for more complex properties.

Solutions by Foundation’s HMO plus range is aimed at HMOs that need a commercial valuation; for instance, if a property has multiple kitchens.

The products can be used on properties with up to six occupants or bedrooms.

There are two specific products at 65% and 75% loan to value (LTV), available on two- and five-year fixed rate terms.

Two-year fixed rates start from 6.99% at 65% LTV and 7.09% at 75% LTV, while five-year fixed rates are priced at 6.44% at 65% LTV and 6.64% at 75% LTV.

All products are subject to a 2% fee.

Rental cover is offered at the lender’s standard 125% pay rate for basic-rate taxpayers and 145% for higher-rate taxpayers.

Tom Jacob, director of product and marketing at Foundation Home Loans, said: “We are pleased to be able to offer landlords a brand new range of products, HMO plus, which gives them the capability to have a commercial valuation on an HMO, up to six occupants/bedrooms.

“This allows landlords to consider a much broader range of properties, beyond those [that] could previously only be valued using a standard valuation, which meant they were often restricted to those [that] could be converted back to a family home for resale if necessary.”

He added: “Landlords are diversifying much more now, which means an increased appetite for a range of different property types; we are pleased to say with Solutions by Foundation, we are now able to broaden our criteria to meet their needs.

“This allows us to offer advisers a finance route for their landlord clients who have a real appetite to diversify into more complex HMO buildings as many are doing in order to ensure they maximise rental yield and profitability on their portfolio properties.”

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