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Foundation Home Loans has launched two HMO products for first-time landlords under its ‘Buy to Let by Foundation’ brand.


Both are available up to 75% LTV, with a two-year fix starting at 6.84% and a five-year fixed-rate option starting at 6.49%. Each comes with a 2% fee.

These products are available on properties that fall within the standard HMO definition, for up to six occupants.

These products are exclusively available to first-time landlords, which the lender defines as someone who has not operated a residential BTL within the last 12 months. Foundation Home Loans also stipulates the applicant must currently be an owner-occupier.

Both products are available within Foundation’s F2 range, for clients financing a more specialist property type and/or those with some historical blips on their credit rating.

Foundation Home Loans director of product and marketing Tom Jacob says: “Historically, first-time landlords tended not to begin 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.”

He adds: “HMO properties clearly 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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