Specialist lender, Foundation Home Loans, has announced that it has reduced the rate on its five-year buy-to-let fixed-rate mortgage at 75% LTV.
The intermediary only lender says that the five-year deal, available to those landlord borrowers who just miss out on mainstream credit, has been cut by 10bps from 3.54% to 3.44% and comes with a 2% fee.
It is available to both individual landlords as well as those using limited companies, has a £1m maximum loan size and there is no limit to the borrower’s background portfolio size, subject to a maximum of £3m with Foundation.
George Gee, Commercial Director at Foundation Home Loans, said: “Our five-year products support landlords looking for a more generous loan for their rental income, given that our ICR is calculated at 125% at the pay rate – in this case, 3.44% - for limited companies and basic rate tax-payers, and 145% for other borrowers.
“The next couple of months also represent a real opportunity for advisers given the anticipation that a significant number of borrowers who bought before the stamp duty increase in 2016 will be coming to the end of their deals now. This five-year rate plus our entire buy-to-let range is available for those seeking to remortgage and offers excellent rates and criteria to support landlord clients as they refinance and potentially add to portfolios.”