Foundation Home Loans has launched a buy-to-let five-year incentive package, targeted at landlords looking to manage their costs when remortgaging.
The intermediary-only lender now offers the buy-to-let remortgage package with a free standard valuation and a reduced product fee from 2 per cent to 1.75 per cent. It also offers £250 cashback upon completion.
The offer is available to all landlords, including portfolio and limited companies but the free standard valuation will not cover a homebuyers report or structural survey.
Foundation’s five-year fixes in the range start at 3.59 per cent and offer upper band loan-to-values of 65 per cent and 75 per cent.
Andrew Ferguson, commercial director at Foundation Home Loans, said the buy-to-let market continued to be driven by remortgage activity.
He said: "Wider market analysis tells us remortgages were more than double the amount of purchases in June this year.
"Recognising this and our own remortgage activity as a key driver, we are confident our short-term incentive package will help keep remortgage costs down for landlords."
In August Foundation found 18 per cent of UK landlords expected to remain a landlord indefinitely - unperturbed by the recent tax and regulatory changes.
Nick Morrey, product technical manager at John Charcol, said for landlords it was generally cheaper to purchase than remortgage, but there were additional fees.
He said: "There are quite a few lenders offering free valuation, it is more common now - if there is already a mortgage someone will already have done an internal inspection at some stage which balances the cost."
rachel.addison@ft.com
