The product can be used for purchases and remortgages on single residential units and carries a completion fee of 2.5%.
Foundation Home Loans announced in December that it would stop adding a premium to its limited company products to level out the interest rates on limited company and individual landlord mortgages.
George Osborne unveiled tax changes for individual landlords in his July Budget to be phased in over four years from 2017. The changes will prevent mortgage interest from being deducted from rental income when calculating tax owed on profits. At the same time, the amount of tax relief which landlords can claim on mortgage interest payments will be reduced from a maximum of 45% to 20%.
FHL commercial director Simon Bayley said by charging limited company landlords a premium on their mortgage interest rate lenders were asking them to hand over any tax saving they may have made by creating a limited company structure.
