The new products are designed for landlords who do not require additional borrowing
Intermediary-only specialist lender Foundation Home Loans has launched a new set of buy-to-let products through its Buy to Let by Foundation brand – the new pound-for-pound (£4£) remortgage products.
Designed for landlord borrowers who do not require additional borrowing, the products, offered as part of the F1 and F2 ranges, cater to landlords with varying credit histories. The F1 products are aimed at clients with nearly pristine credit records, while the F2 products are suitable for those with minor past credit issues.
The two-year fixed-rate products are underwritten on a £4£ basis, allowing for more favourable remortgage terms. Landlords are assessed with a 125% income coverage ratio (ICR), irrespective of their taxpayer status, while the stress rates for the products are based on the pay rate of the remortgage product itself.
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The F1 remortgage product is available at a rate of 6.59%, and the F2 at 6.74%, both at up to 75% loan-to-value (LTV). The options are available to both individual landlords and limited companies, with the minimum loan amount set at £50,000 and the maximum at £1.5 million. Each product carries a fee of 1.5%.
“We’re pleased to be able to launch these two new £4£ remortgage products for buy-to-let landlord borrowers who are not seeking to raise any additional borrowing,” said Tom Jacob (pictured), director of product and marketing at Foundation Home Loans.
“We hope to support landlords who are focused on maintaining their existing properties or portfolios by giving them additional remortgage product options with distinct criteria to consider. We’d urge advisers to contact us to see how we can help and support their landlord borrowers with these options, and the other core and specialist buy-to-let products we offer.”
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