Foundation Home Loans has launched a limited edition five-year, fixed-rate buy-to-let product for portfolio landlords.
The intermediary-only lender says the deal is offered at 2.99% at up to 75% loan to value, with a 2% product fee from today (13 July).
It comes with one free standard valuation and no application fee, for both purchases and remortgages.
The loan, part of the firm’s F1 range, is available for individuals and limited company borrowers and with a maximum loan size of £750,000.
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.
It also offers streamlined document requirements when the portfolio is submitted at the outset, also, there is no maximum portfolio size, subject to a maximum of £5m with the lender.
At the same time, the firm says it has increased its maximum LTV to 80% on its F2 buy-to-let range – for clients financing specialist property types or those with “historical blips on their credit rating”.
These loans are also available 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 houses in multiple occupation; and 4.49% for large HMO or multi-unit blocks. All three products come with a £1,495 flat fee.
Foundation Home Loans commercial director George Gee says: “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 and 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.”
