Foundation Home Loans adds Short-Term Lets to Property Plus proposition and removes £100k minimum loan threshold across Property Plus range
20 May 2025
Foundation Home Loans, the intermediary-only specialist lender, has today (Tuesday 20th May) announced a series of enhancements to its Property Plus range, including the acceptance of Short-Term Lets (STL), rate reductions across its existing Plus range, and the removal of its £100k minimum loan size threshold.
The lender said the addition of Short-Term Lets to Property Plus reflected its commitment to evolving its specialist lending proposition in line with growing market demand from intermediary partners and their landlord clients.
Foundation Home Loans’ new Short-Term Let Plus range has also been introduced in response to greater landlord interest in the short-term rental market – a segment that has grown by 32% since 2019, according to Visit Britain.
The new STL Plus products are aimed at properties being let on a short-term basis, such as through platforms like Airbnb, or for use by contractors, tradespeople and remote workers seeking flexible and cost-effective accommodation.
Foundation Home Loans said these properties will continue to be valued based on their potential buy to let rental income, confirmed by the valuer, ensuring flexibility and a fallback option for borrowers. The lender has confirmed holiday income-only and seasonal lets will remain outside of scope.
The new STL Plus rates includes both two- and five-year fixed rate options, available to up 75% LTV, with rates starting from 6.89%, with a 2% fee.
The lender is also refreshing its existing Property Plus and HMO Plus – available up to a maximum of six occupants/beds - product sets as follows:
- Property Plus two-year fixed rate, reduced by 0.10%, down to 6.84%, with a 2% fee; the five-year fixed rate has been reduced 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 fixes, with a 2% fee, have 0.10% and 0.05% reductions, with rates at 6.94% and 6.84% respectively.
Foundation Home Loans has also announced the removal of its £100k minimum loan size on Property Plus products. It said this decision was made following consistent strong quality cases being received across the Property Plus range.
This follows on from last week when Foundation Home Loans announced the successful completion of its Braccan Mortgage Funding 2025-1 deal, securing £550 million of funding.
Tom Jacob, Director of Product and Proposition at Foundation Home Loans, said:
“We’ve listened to broker feedback and seen first-hand the growing demand for more flexible solutions in the specialist buy to let space. 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.
“Removing the £100k 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.”
For more information on Foundation Home Loans, please visit: www.foundationforintermediaries.co.uk
