Foundation raises maximum loan-to-value

Foundation raises maximum loan-to-value

Foundation Home Loans has raised the maximum loan-to-value (LTV) on its Standard and First Time Landlord products from 75 per cent to 80 per cent.

The change to the specialist lender’s criteria takes effect today (14 December) and is being offered with a choice of a 2 per cent arrangement fee or a flat £1,995 fee.

Rates on Foundation Home Loans products start from 3.85 per cent.

Jeff Knight, Foundation's director of marketing, said the move followed a market test with some of its distribution partners.

He said: “As a growing and ambitious company, we are always looking for ways to enhance our proposition to landlords, both non-portfolio and portfolio landlords. Our rates are also the same for both limited companies and individuals.”

A number of lenders have been shaking up criteria and adding incentives to their buy-to-let offerings following the introduction of tax and regulatory changes for portfolio landlords – defined as those with four or more properties – in 2017.

In October, Keystone relaxed a number of criteria around its buy-to-let proposition, while Mansfield Building Society said it would allow a landlord’s personal income to be taken into account when assessing affordability.

More recently, Nationwide’s buy-to-let arm The Mortgage Works announced the launch of a pilot scheme aimed at professional landlords borrowing through limited companies, and Yorkshire’s intermediary arm Accord added a £1,000 cashback boost for landlords purchasing new properties. 

Tony Salentino, director at Southampton-based Complete FS, said: “On the increase in LTV, we were fortunate to be part of the trial, and it did attract more business.

“It is also about the service they provide, and fortunately we have an on-site underwriter. In terms of the whole proposition, it has been very positive for us."