Foundation Home Loans has introduced a new Limited Edition five-year, fixed-rate buy-to-let product specifically for portfolio landlords.
The new Foundation product is part of its F1 range offered at 2.99% up to 75% LTV, with a 2% product fee. It comes with one free standard valuation and no application fee, for both purchases and remortgages.
It is available to individuals and limited company borrowers and has a maximum loan of £750k. The rental cover requirement is calculated at payrate, and stress tested at 125% for limited companies and basic rate taxpayers, and 145% for all others.
Foundation also offers streamlined document requirements when the portfolio is submitted at the outset. Additionally, there is no maximum portfolio size, subject to a maximum of £5m with Foundation.
The lender is also increasing its maximum LTV to 80% on its F2 buy-to-let range – for clients financing a more specialist property type and/or those with some historical blips on their credit rating. Available again for both purchases and remortgages, the three new 80% LTV products are five-year fixes at: 4.29% for standard properties; 4.39% product for standard HMOs; and 4.49% for large HMOs/multi-unit blocks. All three products come with a £1,495 flat fee.
In addition, Foundation is also reducing the rate on its F1 80% LTV five-year fix by 30 basis points, to 3.99% from 4.29%. The product comes with a 2% fee.
George Gee, commercial director at Foundation Home Loans, said: “We’re aware that a large number of landlords are looking to expand their portfolios through this year and we wanted them to benefit from an excellent rate over five years, giving certainty of payment for a much longer time period, alongside a free valuation and no application fee in order to keep their costs at the outset to a minimum.
“At the same time, we’re able to extend our loan to value to 80% in our F2 Range, including for HMO and large HMO/MUB properties, with a range of products with a flat fee, thereby giving landlord borrowers more flexibility regarding their capital and deposits and helping to reduce their upfront costs.
“Finally, we’ve also been able to deliver a sub-4% rate at 80% LTV for our F1 landlord borrowers, which again is highly competitive and gives that payment certainty over the five-year period.”
