The updated LTV is available to both individuals and limited companies in the lender’s F1 range.
The lender’s five-year fixed rate is 6.49%, with a minimum loan size of £100,000 and no product fee.
There are no minimum loan requirements and brokers can benefit from Foundation Home Loans’ same-day decision in principle turnaround times.
The lender said the higher LTV and no product fees will “appeal to a wide range of borrowers”, from first-time landlords to seasoned investors.
According to Criteria Brain, two other lenders currently go up to 85% LTV for BTL applications.
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Tom Jacob, director of product and marketing at Foundation Home Loans, said: “Extending our core BTL offering into the 85% LTV band represents a significant step for the business and a big moment in BTL lending. It provides landlords and our intermediary partners with a compelling, low-deposit route to access funding in a market where affordability can often be a barrier – particularly for those looking to maximise leverage or reduce upfront costs.
“Whether it’s a client’s first rental property or an addition to an existing portfolio, this product opens up new borrowing opportunities with the reassurance of a competitive, fee-free rate and our trademark fast turnaround times. We expect it to be an extremely popular option.”
Earlier this month, the firm enhanced its residential offering.
