Foundation Home Loans marketing director Jeff Knight has spoken of his delight following the enhancement of its buy-to-let range with a new HMO (Houses in Multiple Occupation) product.
The new HMO product, available to both individuals and limited companies that have had previous experience as landlords, comes with both two and five year fixed rates. They start at 3.19% and 3.49% respectively, with no pricing differential for limited companies.
The rental stress calculations are the same as its other buy to let products, for example 125% x pay rate on a five year fixed rate for a limited company borrower. The maximum loan size is £500,000. The maximum term is 30 years, with a maximum age of 75 at end of term – though there is no maximum age for limited company applicants.
And Mr Knight said: “We know that landlords with HMOs continue to achieve the highest rental yields - 1.1% above the average according to recent research by BDRC and seem to be growing in popularity. Speaking to some of our intermediary partners, they are very delighted to be able to offer more choice to their clients with our new product range to help with their demand.”
A HMO property is a dwelling rented by more than three unrelated tenants using the same amenities, and the Foundation Home Loans solution is for a minimum property value of £75,000. The offer covers maximum bedrooms of eight for HMOs and intermediaries can also access the product for multi-unit blocks up to 10 flats.