"Short-term lets are one of the fastest-growing property types, and by formally introducing them into our Property Plus proposition, we’re enabling brokers to serve more landlords with more relevant product options"
- Tom Jacob - Foundation Home Loans
Specialist intermediary lender, Foundation Home Loans has announced that it has introduced several updates to its Property Plus range. These include accepting short-term lets, reducing rates across the existing range, and removing the £100,000 minimum loan size threshold.
The lender said adding short-term lets to Property Plus reflects its aim to evolve its specialist lending in line with rising demand from intermediaries and landlord clients.
The new Short-Term Let Plus products respond to growing landlord interest in short-term rentals, a market segment that has expanded by 32% since 2019, according to Visit Britain. The products target properties let on a short-term basis, such as via platforms like Airbnb or for use by contractors, tradespeople, and remote workers seeking flexible, cost-effective housing.
Foundation Home Loans will value these properties based on potential buy-to-let rental income, verified by valuers, ensuring flexibility and fallback options for borrowers. However, holiday income-only and seasonal lets remain excluded.
The STL Plus range offers two- and five-year fixed rate options, available up to 75% loan-to-value, with rates starting at 6.89% and a 2% fee.
In addition, Foundation Home Loans is refreshing its existing Property Plus and HMO Plus products, which cover up to six occupants or beds:
Property Plus two-year fixed rates have been cut by 0.10% to 6.84% with a 2% fee; the five-year fixed rate fell by 0.05% to 6.74%.
Property Plus two- and five-year Fixed Flex options, with a 2.75% fee, now have rates of 6.74% and 6.59% respectively.
HMO Plus two- and five-year fixed rates, with a 2% fee, dropped by 0.10% and 0.05%, reaching 6.94% and 6.84% respectively.
The lender also removed the £100,000 minimum loan size on Property Plus products, citing consistently strong quality cases received across the range.
“We’ve listened to broker feedback and seen first-hand the growing demand for more flexible solutions in the specialist buy-to-let space," comments FHL's director of product and proposition, Tom Jacob. "Short-term lets are one of the fastest-growing property types, and by formally introducing them into our Property Plus proposition, we’re enabling brokers to serve more landlords with more relevant product options.
He added, "Removing the £100,000 minimum loan size across all Plus products was also a logical next step, we’re confident in the quality of cases we receive and want to ensure advisers can offer competitive solutions to clients across the full loan-size spectrum.
"Combined with rate reductions and product simplification, this refresh further strengthens our commitment to a flexible and practical buy-to-let proposition that reflects the real-world needs of advisers and their landlord clients today.”
