The lender has launched products for standard HMOS, large HMOs and multi-unit blocks (MUB), which are available as two-year variable deals.
The products are priced at 3.34% up to 65% LTV or 3.69% up to 75% LTV for standard HMOs. For Large HMOs or MUBs – HMOs to a maximum of eight bedrooms and all MUBS to a maximum of 10 units – the rate is 3.44% up to 65% LTV or 3.79% up to 75% LTV.
Foundation revealed the new products were for the exclusive and sole use of its packager partners and were available immediately.
The launch of the packager exclusive comes following a number of changes across Foundation’s wider buy-to-let product range this month.
These include increases to LTV bands – from 60% to 65% LTV and 70% to 75% LTV – as well as rate cuts of up to 0.5% and the introduction of a new five-year ‘fixed fee product’ for F1 borrowers.
Market demand
Jeff Knight, director of marketing at Foundation Home Loans, said: “We’re in constant dialogue with our packager partners and will seek to respond quickly where possible to present solutions for the demand they are seeing in the market.
“That being the case, we’re able to launch these exclusive products for packagers which provide further product options for landlord borrowers seeking either standard HMO or large HMO/MUB finance.”
He added: “We’re also conscious that the circumstances for landlord borrowers during 2020 and, for the foreseeable future, might be very different to what they could be in 12-18 months’ time.
“This is why these variable products come with no ERCs which will allow landlord borrowers, should things change in the future, to potentially remortgage at a later date with no charges to pay.
“We’ll be monitoring take-up of these products closely and would hope that, if they are seeing strong demand, we can then roll them out to the wider market.”
Meanwhile, Phil Jay, director at Complete FS, added: “It’s testament to the commitment of Foundation that, despite market uncertainty, they listen to the packager community and have delivered quality products.
“Lending on HMO and MUBs with no redemption penalties provides greater flexibility to landlords for when the specialist market returns to some normality.”
