Foundation launches lowest deal for limited companies

Available up to 65% LTV, the product has a rate of 2.99% and an arrangement fee of 2%. Limited companies will be subject to an interest coverage ratio of 125% of pay rate while for individuals it’s 145%.

Alternatively landlords could opt for a 3.39% fixed rate with a flat fee of £995.

Jeff Knight (pictured), marketing director, Foundation Home Loans, said the products are based on feedback from brokers.

He added: “With the rental calculation based on the pay rate, these products will be appealing to experienced landlords, including limited companies and those with large portfolios.”

Charlotte Nelson of Moneyfacts said: “At first glance this 2.99 five-year fixed rate buy-to-let deal from Foundation Home Loans does not appear to be the most cost-effective in the market overall, however looking at this more closely this deal enters the market as the lowest deal currently available to limited companies.”

“However, with a 2% arrangement fee landlords will need to ensure that this is still a viable option when this fee is factored in.”  

“With the average five-year fixed rate for limited companies standing at 4.58% today this deal is a great choice for those considering becoming or who already have a limited company structure.”

“With April’s tax changes putting the spotlight on limited company deals it is little surprise we a seeing more cost-effective deals launch into the market.”