Foundation Home Loans has launched a new short-term let product, as part of the buy-to-let range, available exclusively through Legal & General’s Mortgage Club.
The product is available to individuals and limited companies and is suitable for landlords looking to let out their properties on a short-term basis, without the need for an Assured Shorthold Tenancy (AST) agreement.
Andrew Ferguson, commercial director at Foundation Home Loans, said: “Considering the growing trend for Air BnB-type offerings, our new Short Term Let product will provide landlords with increased flexibility as we head into the summer season.
“However, there is equal demand for short lets from relocating corporate tenants, people who are testing out a residential area before buying, contract workers, and homeowners needing temporary accommodation while undergoing renovations.”
The two and five-year fixed rates start from 2.99% and are available up to 75% loan-to-value for limited companies and individuals, and there is no minimum income required.
For this product, Foundation Home Loan’s standard product criteria and existing interest cover ratios apply, based on a standard rental assessment.
Andrew Montlake of Coreco commented: “More and more landlords have been looking at the short-term rental market especially with the rise of Airbnb, something that Foundation have clearly listened to and it is refreshing to see a lender taking an innovative approach to provide products that clients really want.”
Danny Belton, head of lender relationships, Legal & General Mortgage Club, added: “Foundation Home Loans have worked with Legal & General Mortgage Club, and following feedback from our members, have delivered this new exclusive product. Innovation like this is most welcome as it will add benefit to brokers and their customers.”