All Types of Mortgages 

AToM launches 125% coverage BTL with Foundation Home Loans

AToM launches 125% coverage BTL with Foundation Home Loans

AToM (All Types of Mortgages Ltd)  has launched a new packager exclusive product with Foundation Home Loans (FHL)

The offer is a five year fixed rate at 3.49 per cent with a rental coverage at 125% of pay rate for buy-to-let mortgages in a limited company name.

Dale Jannels, managing director at AToM said: "FHL have been a great lender for innovation with their products being attractive to professional investors as well as those new in to buy to let. 

"Unsurprisingly, the phone is already busy and I doubt this product will be around for too long. 

"We are grateful to have this opportunity and it's another great offering for AToM's increasing network and broker partners.”

The product has an 145 per cent of pay rate if it is held in a personal name, a  2 per cent arrangement fee at 75 per cent loan to value and a completion fee added up to a max 80% LTV.

Early repayment rates are 5 per cent, 4 per cent , 3 per cent, 2 per cent, and 1 per cent.

Jannels added "Those using the new AToM Together system will know that with just one input, brokers can download all pre-populated application forms, source KFIs and full submission requirements to obtain this great product."

Martin Stewart, director of London based mortgage brokers London Money, said the product is particularly useful for the London market where rents have failed to keep up with house price inflation, making them more difficult to source with high street lenders who have more punitive stress tests.

"With the product being able to go as high as 75% at the pay rate this may well open up more opportunites for clients and their brokers. That said they need to ensure that they will want the money for the full 5 years to not only avoid the redemption penalty but also to minimise the impact of the large arrangement fee of 2%.

"It is good that it is also available for limited company arrangements. As the tide recedes further on the BTL band wagon we should see the exiting of the dinner party landlords leaving the way for experienced landlords with a long term game plan who may prefer to incorporate properties either now or in the future,” he added.

laura.miller@ft.com

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