Specialist lender, Foundation Home Loans, has announced that it seen a significant increase in both portfolio landlord and limited company buy-to-let business over the past 12 months.
According to May's figures, the lender has more than doubled its volume of limited company business – up 130% - compared to May 2018, with the number of limited company applications received during last month also doubling – up 104% - compared to the same month last year.
The improvement comes as Foundation continues to build its specialist buy-to-let proposition which focuses on providing solutions to its brokers and packager partners.
Foundation has also launched a five-year fix ‘remortgage special’ product today which is suitable for portfolio landlords, limited companies and individuals. It is available at 3.59% up to 65% LTV and 3.89% up to 75% LTV, and comes with a flat fee of £2,995 with stepped ERCs from 5% down to 1%. The product also comes with Foundation’s free standard valuation and £250 cashback upon completion.
Last month Foundation also revealed research – undertaken by BVA BDRC – that showed portfolio landlords (those with four or more buy-to-let mortgaged properties) are more likely to purchase via a limited company, with almost seven in 10 of landlords with more than 11 properties in a portfolio, intending to do so in this way.
Foundation’s range of buy-to-let products for those who are purchasing or refinancing through a limited company is currently available up to 80% LTV, is offered at an ICR of 125 times the pay rate for five-year fixed rates, has no maximum age, accepts newly-incorporated limited companies, and has a maximum loan size of £1.5m. All Foundation’s products are available via its distributor network including all mortgage clubs, networks and key packagers.
Jeff Knight, Director of Marketing at Foundation Home Loans, said: “Our highly-skilled underwriters have a real understanding of complex buy-to-let, and are able to help our intermediary partners with complex BTL, HMOs, multi-unit blocks, limited company and portfolio landlord customers. We are seeing huge interest in this area of the market and will continue to develop our proposition to meet the needs of our intermediary partners and their clients in this product area.”
Tony Salentino, Director of specialist distributor, Complete FS, commented: “Foundation has really focused its efforts over the last year on this key area of the market, and the results are there to see; we have total confidence in Foundation’s ability to service the breadth of the business we do.”