Foundation, the intermediary-only specialist lender, has launched specialist products for large HMOs (houses of multiple occupation) and short-term lets.
The lender has also cut fixed rates on a number of standard, standard HMO and MUFB (multi-unit freehold block) products.
Foundation temporarily withdrew products last month, citing volatility, but reintroduced them after the markets settled.
Growing markets
The new large HMO products include a two-year fixed rate at 5.29% with a 3% fee and a five-year fixed rate at 5.99% with a 4% fee. The short-term let products include a two-year fixed rate at 5.19% with a 3% fee and a five-year fixed rate at 5.89% with a 4% fee.
Grant Hendry, director of sales at Foundation, said they were aimed at two growing areas of the buy-to-let (BTL) market, where landlord borrowers were targeting higher yields. Recent studies have suggested that HMOs are some of the highest yielding products at present.
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He said: “With markets continuing to ease over the past few days, we’re maintaining our ongoing commitment to cutting rates where possible, and also launching new products specifically across higher-yielding property types, such as large HMOs and short-term lets.
“Landlord borrowers continue to seek product options for these types of properties as they look for improved yield, so we’re pleased to be able to offer both two- and five-year fixed rate options”.
First-time products reintroduced
Hendry added that Foundation has reintroduced its F1 First-time Buyer/First-time Landlord product to support new landlord borrowers making their first foray into property investment. This is a five-year fix that comes with a rate of 6.54% and has a 1.5% fee. F1 products are for those with an ‘almost clean’ credit history, he said.
The lender has also announced price cuts across a number of specialist and standard fixed rates.
It has cut its standard HMO two-year fix with a 3% fee by 0.25% from 5.24% to 4.99% and its five-year fix with a 4% fee by 0.1% from 5.79% to 5.69%. MUFB fixes have also been cut – the two-year fix with a 3% fee from 5.34% to 5.09%, and the five-year fix with a 4% fee from 5.89% to 5.79%.
In its standard BTL range for F1 borrowers – those with an almost clean credit history – its two-year fix with a 3% fee has been cut to 4.89%, and its five-year fix with a 4% fee has gone down to 5.59%.
“Following the changes we introduced last week, we believe we’re continuing to offer a variety of options to help brokers and their landlord clients.
“We’ll continue to monitor the market situation and act both appropriately and responsibly, while maintaining the depth and breadth of our overall buy-to-let offering,” Hendry added.