Buy-to-letJun 14 2017

Foundation cuts buy-to-let rates

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Foundation cuts buy-to-let rates

Foundation Home Loans has cut rates on fixed rate products in its buy-to-let standard range.

Two, three and five-year fixed rates in the product range now start from 2.99 per cent, 3.19 per cent and 3.29 per cent respectively.

Available at 65 per cent loan-to-value, the products come with a 2 per cent arrangement fee.

As well as helping individuals and limited companies cope with the economic climate, the change is also designed to help portfolio landlords looking to remortgage in advance of more stringent underwriting rules to be introduced from 30 September.

Foundation caters for clients with more complex needs, and its standard range is for clients with cleaner credit records.

Jeff Knight, marketing director at Foundation Home Loans, said: “The result of the general election, Brexit negotiations and, closer to home, ongoing tax changes leaves brokers and their clients facing yet more uncertainty. 

“We want to ensure we are providing some clarity with our highly competitive fixed rate options and a transparent rental calculation.”

Tony Salentino, director at Southampton-based Complete FS, said: “There is no question that the rental market, and landlords in particular, have taken a bit of a hit over the past 18 months, and it is good to see companies like Foundation improving affordability and stress testing.

“A five-year fix at 3.29 per cent not only shows a lot of support to the landlords but also gives them some stability in terms of what their income is going to be like over the next five years while they are going through the transition to paying tax on their whole income without having the benefit of tax relief on interest.

“Specialist buy-to-let is very buoyant now. It is great to see lenders out there looking to support landlords.”

simon.allin@ft.com