AToM and Foundation launch 3.49% five-year fix

The product will be available for private landlords and limited companies, offering a rental coverage calculated at 145% and 125% of pay rate respectively.

It will come with a 2% arrangement fee at 75% loan to value (LTV) and a completion fee added up to a maximum 80% LTV. Fixed Early Repayment charges (ERC) will be offered at between 1% and 5%.

AToM managing director Dale Jannels said: “FHL have been a great lender for innovation with their products being attractive to professional investors as well as those new to buy-to-let. To offer a five year fixed rate at 3.49% and calculate rental coverage at 125% of pay rate, for BTLs in a limited company name, is a fantastic proposition. Unsurprisingly, the phone is already busy and I doubt this product will be around for too long.”

Brokers can obtain the product via AToM’s Together system, which was launched in May and allows users to download pre-populated application forms and source submission requirements.

The new product comes after the BTL market was dealt a number of bad cards by the government this year. In April a 3% Stamp Duty surcharge became effective on second homes, while interest relief for buy-to-let landlords is set to be cut from 45% to 20% in April 2017.

In response, Foundation earlier this year launched what was dubbed the lowest-ever BTL deal in partnership with 3mc. The 2-year fixed rate product was offered at a rate of 3.49% to both, private and limited companies.