Foundation Home Loans has launched a limited edition remortgage-only buy-to-let product.

The five-year fixed-rate loan, at 3.19%, is available at up to 75% loan to value, with a maximum loan of £1m.

The intermediary-only specialist lender says the offer is open to individual landlords, limited companies and portfolio landlords, and comes with a reduced product fee of 1%, normally 2%. Borrowers receive £500 cashback on completion.

Foundation says there is no limit to the background portfolio size of the borrower, subject to a maximum of £3m with the lender.

The firm uses an interest coverage ratio calculated at the pay-rate, at 125% for limited companies and basic-rate taxpayers, and 145% for others.

Foundation Home Loans commercial director George Gee says: “We have listened to intermediary feedback to design a product structure that meets market appetite — five years ago, there was a popularity shift from two to five-year fixed rates, and we anticipate that to continue for upcoming mortgage transactions in 2021.

“Remortgage activity has been subdued during the pandemic to date but we are seeing an increasing number of landlord borrowers seeking to utilise their existing property portfolio in order to release equity to fund future purchases.”

Earlier this month, the lender withdrew six of its buy-to-let products, and said they would be “replaced with reduced rates”.