Buy-to-letJun 15 2018

Foundation Home Loans slashes buy-to-let rates

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Foundation Home Loans slashes buy-to-let rates

Foundation Home Loans has increased its borrowing limits and reduced rates across its buy-to-let range.

This includes products for limited companies and individuals with prior landlord experience financing a house in multiple occupation (HMO).

Across its product range, the lender has increased the maximum loan size to £750,000 at 75 per cent loan-to-value (LTV).

The original maximum loan size was £500,000 and the maximum loan limit of £1m for 65 per cent LTV deals is unchanged. 

Foundation's five-year fixed rates now start at 3.19 per cent, which are available for limited companies and individuals.

For its HMO products, five-year fixed rates start at 3.54 per cent.

For all five-year fixes, interest cover ratios (ICRs) are calculated at pay rate.

Andrew Ferguson, commercial director at Foundation Home Loans, said: "As a growing business, we want to ensure that we offer competitive products across our distribution channels, be it mortgage clubs, packagers or networks.

"By increasing our maximum loan size at the upper LTV band of 75 per cent, we will now be able to offer solutions to more landlord clients.”

Daniel Hodgson, mortgage adviser at Ipswich-based Just Mortgage Brokers, said: “Foundation Home Loans changes to their rates and its maximum loan size at 75 per cent is welcomed in a sector of the market that continues to offer limitations of choice. 

"To have the ability to calculate ICR at the pay rate for five-year deals is also a factor that is an asset when looking at clients borrowing requirements.”

aamina.zafar@ft.com