Foundation launches new limited edition BTL offering

Foundation Home Loans has launched a limited edition, remortgage-only BTL product.

The five-year fixed-rate offering — available for individual and portfolio landlords and limited companies — is priced at 3.19% at up to 75% LTV for loans of up to £1m.

It comes with a reduced product fee of 1% and £500 cashback for borrowers on completion.

There is no limit to the background portfolio size of the borrower, subject to a maximum of £3m with Foundation. 

The lender uses ICR calculated at the pay rate, and at 125% for limited companies and basic-rate taxpayers, and 145% for others.

George Gee, commercial director at Foundation, said: “We have listened to intermediary feedback to design a product structure that meets market appetite: five years ago, there was a popularity shift from two- to five-year fixed rates, and we anticipate that to continue for upcoming mortgage transactions in 2021. 

“Remortgage activity has been subdued during the pandemic to date, but we are seeing an increasing number of landlord borrowers seeking to utilise their existing property portfolio in order to release equity to fund future purchases. 

“We believe this should be an excellent addition to the product choices available to advisers.”

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