Foundation Home Loans (FHL) has made changes to its dedicated HMO offering.
The maximum loan size for the product, available to both individuals and limited companies with prior landlord experience, has been increased to £1m with a maximum LTV of 65%.
The HMO product will continue to offer both two and five-year fixed rate options, 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 limited companies.
The maximum mortgage term remains 30 years, with a maximum age of 85 at end of term – though there is no maximum age for Limited Company applicants.
Foundation Home Loans has also split the product into two categories: HMO or multi-unit properties with up to six bedrooms/units will be offered rates starting from 2.99% and Large HMOs (up to eight bedrooms) or multi-unit blocks (up to 10 units) will carry a new valuation fee scale and offer rates starting from 3.09%.
Andrew Ferguson, commercial director at Foundation Home Loans, said: “As a specialist lender, we are always seeking ways to enhance our proposition. Feedback from brokers was very positive about our HMO range, but there was demand for a larger loan size. So, we have listened and delivered. Our HMO range is very competitive and the ICRs are no different to our other products.”
