Foundation home loans is launching a new product aimed at professional landlords who are borrowing large amounts.
The two-year fixed rate deal has a minimum loan of £200,000, and a rate of 2.89 per cent with a 1 per cent arrangement fee.
The product, which is only available through intermediaries, is available at a rental calculation of 125 per cent times 5.5 per cent notional rate for limited companies and 145 per cent times 5.5 per cent notional rate for individuals.
Jeff Knight, director of marketing at Foundation Home Loans, said some landlords in its focus groups had said that they did not want to be tied into longer term deals, despite a recent shift towards five-year fixed rates.
“This shorter term product will therefore appeal to those portfolio landlords who prefer greater flexibility with their products,” he said.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said the product was “very competitively priced”, particularly for those using a limited company, and predicted that it is “likely to be popular”.
He said: “While Foundation is able to offer a timely service now, we hope this can be maintained when the broker community is made aware of, not only this product, but the lender's overall proposition."
rosie.murray-west@ft.com
