Foundation Home Loans has cut the rate on a five-year buy-to-let fixed rate mortgage by 10pbs.

The reduction applies to the specialist lender’s five-year product at 75 per cent LTV, taking it from a rate of 3.54 per cent to 3.44 per cent.

The BTL deal comes with a 2 per cent fee and is available to individual landlord borrowers as well as those using limited companies who just miss out on mainstream credit.

A maximum loan size of £1m applies and there is no limit to the borrower’s background portfolio size, subject to a maximum of £3m with Foundation.

Foundation Home Loans commercial director George Gee says: “Our five-year products support landlords looking for a more generous loan for their rental income, given that our ICR is calculated at 125 per cent at the pay rate – in this case 3.44 per cent – for limited companies and basic-rate tax-payers, and 145 per cent for other borrowers.

“The next couple of months also represent a real opportunity for advisers given the anticipation that a significant number of borrowers who bought before the stamp duty increase in 2016 will be coming to the end of their deals now. This five-year rate plus our entire buy-to-let range is available for those seeking to remortgage and offers excellent rates and criteria to support landlord clients as they refinance and potentially add to portfolios.”