Specialist buy-to-let lender Foundation Home Loans has launched a five-year fixed rate which uses the pay rate of 4.39% to assess the rental yield, available up to 75% loan-to-value.
A three-year fixed rate has been introduced to the range at 3.89% based on a notional rate of 5.25% to calculate the rental yield, also at 75% LTV. The two-year fixed has been cut from 3.99% to 3.69%.
Business development director Paul Brett (pictured) said: “By allowing the rental yield calculation of 4.39% rather than the notional rate we believe this will allow more customers to benefit from our compelling lending proposition. I believe that introducers will be delighted by these changes which will appeal to more landlords looking to lock into a longer-term product.”
The lender opened its doors in February this year with a product range aimed at amateur landlords with prime and light adverse mortgages.
