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‘Buy to Let by Foundation’, the buy-to-let (BTL) brand of Foundation Home Loans, has launched two house in multiple occupation (HMO) products specifically for first-time landlords.

‘Buy to Let by Foundation’ defined first-time landlords as those who have not operated a residential buy-to-let property within the past 12 months, and is currently an owner-occupier. 

The products fit within the standard HMO definition – for up to six occupants – and are available within the F2 range, for clients financing a more specialist property type or those with some historical blips on their credit rating.

Both products are available up to 75% loan-to-value (LTV), with the 2-year fix starting at 6.84% and the 5-year fix starting at 6.49%. Each comes with a 2% fee. 

Tom Jacob (pictured), director of product and marketing at Foundation Home Loans, said: “Historically, first-time landlords tended not to begin their property investing journey with more specialist property types, however more recently we have been aware of an increase in demand in this space, no doubt fuelled by a quest for greater rental yield levels, and in order to meet the healthy demand for such tenancies.

“We’re therefore very pleased to be offering these new standard HMO products, specifically for first-time landlords, who can benefit from our experience in this space, plus a 75% LTV product with both competitive 2- and 5-year pricing.

“Clearly, HMO properties come with greater responsibilities and requirements than standard rental property types and it’s important advisers play a pivotal role with first-time landlords, helping them understand all that is involved as well as ensuring they have the right finance solution for their purchase needs.”



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