InterBay and Foundation launch new BTL products

InterBay Commercial and Foundation Home Loans have updated their offerings with new products and updated LTVs.

InterBay Commercial

InterBay Commercial has increased the maximum LTV limit across its BTL mortgage range to 80% and added new products to its offering.

To support the return of higher LTVs, the lender has launched a two- and five-year fixed-rate product, which are available at 80% LTV at 4.54% for the two-year and 4.74% for the five-year fix.

Following the launch of its holiday lets range  earlier this year, InterBay has now added a two-year fixed-rate mortgage with no product fee, available at 4.29% on applications up to £500,000.

The lender has also removed the 20-bed limit on HMO applications and the maximum loan size to support large cases.

Emily Machin, head of specialist finance at InterBay, said: “We’re excited about our enhanced BTL range and are looking forward to working with our intermediary partners to help them place their customers’ cases.

“By increasing the maximum LTV limit on our BTL range to 80%, we’re confident this will appeal to our broker partners — especially as we now have no upper limits on loan size or number of bedrooms/units for HMOs/MUFBs and have the capability of combining properties onto a single application, which saves an enormous amount of time.

“With regard to our new two-year fixed-rate holiday let mortgage with £0 product fee, we’ve certainly seen an increase in demand from investors who already have an understanding of the holiday lets rental market. 

“We know that investors are always looking for new opportunities for capital growth to boost their rental yield and differentiate their asset class, so this addition to our range will be welcomed.”

Foundation Home Loans

Foundation has introduced three two-year fixed-rate green mortgage products on variable discount rates for individuals and limited company F1 BTL borrowers seeking to purchase a green property.

Each mortgage is available at up to 75% LTV and comes with a 2% product fee and no ERCs.

Pricing starts at 1.99%, 2.29% and 2.49% for A, B and C EPC ratings, respectively.

There is no limit to the background portfolio size of the borrower, subject to a maximum of £5m with Foundation.

The green ABC purchase mortgages from Foundation are priced to reflect the increased benefit to the landlord based on the energy efficiency rating of the property; the better the EPC category of the property being purchased, the greater the discount applied to the 5.09% reversion rate.

In addition, Foundation is offering a green reward product for remortgages — a five-year fixed-rate BTL mortgage for private rental sector properties with an EPC rating of C or above dated within the last 12 months.

It is currently available at 3.49% for 65% LTV and 3.59% for 75% LTV, with £750 cashback on completion, plus a reduced fee of 0.75%.

This product is not available for listed properties.

George Gee, commercial director at Foundation, said: “Up until now, our green products  have only been for those landlords seeking to remortgage having improved the efficiency rating. 

“Now, we are broadening this range by offering it to landlords when purchasing and rewarding those who choose a more energy-efficient property. 

“The better the EPC rating, the bigger the discount; our aim is to help meet the needs of landlords who want a more energy-efficient property portfolio. 

“The government has itself set an ambitious target of net zero greenhouse gas emissions by 2050, and it’s widely thought that in order to do this we’ll need to eliminate energy inefficiencies from UK housing stock by 2030."

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