The product, which is available through intermediaries, is available at a rate of 3.96% at a two-year discounted rate or at 4.19% on a two-year fixed rate, and is open to borrowers without any requirement of minimum income or time of minimum employment.
FHL will not allow someone who has never owned a property in their past, to take out one of their first-time landlord products. But, borrowers who have had a mortgage at some point and have since sold the property or come off the mortgage and are, for example, now renting – would be considered for a first-time landlord mortgage. They do not need to currently own a property.
It will also lend to borrowers up to the age of 85 by the end of term.
The first-time landlord product has a loan-to-value of up to 75% and requires a minimum loan amount of £50,000 to a maximum of £500,000. Borrowers can choose from an option of repayment or interest only.
Paul Brett, business development director at FHL (pictured), said it was seeking to target an underdeveloped sector where many lenders concentrated on professional landlords only.
“First-time landlords represent a challenge to many lenders, whose reliance on credit scoring makes them wary of breaking new ground. In contrast, FHL is able to use our data on seventy thousand BTL loans to create competitive yet sound products supported by experienced underwriters.
“As we require neither a time of minimum employment nor minimum income and are happy to accept ages up to 85 by the end of the term, as well as non-owner occupiers, FHL offers advisers real borrowing options for the first-time landlord.”
FHL panel member, Ying Tan, managing director, Buy to Let Club, added: “Many returning landlords are pigeon holed as ‘first-time landlords’ if they haven’t owned a buy-to-let property for the last 24 months, with the launch of this product FHL have confirmed their stance and commitment to new, existing and returning landlords.”
