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Foundation Home Loans Upgrades HMO Financing with Enhanced Product Range
Foundation Home Loans, a leading specialist lender, has announced two new features within its Houses in Multiple Occupation (HMO) product range, aimed at providing investors with enhanced support and flexibility in the growing HMO market.
Foundation is releasing new HMO products, with rates reduced by up to 30bps within its BTL range. Additionally, Foundation continues to offer ‘HMO Plus’, which allows for commercial valuations to be carried out on more complex small HMOs, within its Solutions range. This feature is designed to cater for multi-occupancy properties which have potentially been heavily converted, or may have non-standard features like multiple kitchens.
"Our enhanced HMO product range reflects our commitment to supporting investors in this dynamic market segment," said Tom Jacob, Director of Product and Proposition at Foundation Home Loans. "By continually reviewing our product offerings, we're providing a robust foundation for HMO financing."
Key features of the enhanced HMO range include:
- Acceptance of first-time landlords
- Attractive Interest Coverage Ratios (ICRs) of 125% and 145% for specialist properties
- Commercial valuations available for complex small HMOs under the 'Solutions' range
- No bedroom limit on Large HMOs (up to 65% LTV)
The lender's move comes at a time when the HMO market is experiencing significant growth, driven by increasing demand for affordable shared housing options.
Mortgage Brokers interested in learning more about these products can call the iBDM team or visit the Foundation Home Loans website.
