SpecialistAug 2 2017

Foundation launches 5-year fix for landlords

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Foundation launches 5-year fix for landlords
BySimon Allin

Foundation Home Loans has launched a limited edition five-year buy-to-let product for individuals and limited companies.

The addition to the specialist lender’s standard range is aimed at experienced landlords and provides two options: a 2.99 per cent fixed rate with a 2 per cent arrangement fee or a 3.39 per cent fixed rate with a flat fee of £995, both at 65 per cent loan-to-value (LTV).

The interest coverage ratio is 125 per cent of the pay rate for limited companies and 145 per cent for individuals.

Early repayment charges start at 5 per cent in the first year and decline by 1 percentage point for every subsequent year.

The maximum loan size is £500,000, there is no maximum age for limited company applicants and the product is not available to first-time landlords.

Jeff Knight, marketing director, Foundation Home Loans, said: “These limited edition products are based on feedback from our intermediary partners, and designed to offer choice with the two five-year fixed rate alternatives. 

“With the rental calculation based on the pay rate, these products will be appealing to experienced landlords, including limited companies and those with large portfolios.”

Rob Jupp, chief executive at Essex-based Brightstar, commented: “[It is] a keenly priced product which will certainly help to fill a niche requirement of some landlords who are concerned about economic uncertainty in the years ahead.”