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Foundation Home Loans and Paragon expand BTL range

  • 24/06/2021
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Foundation Home Loans and Paragon expand BTL range
Foundation Home Loans has brought in a new remortgage-only five-year fixed buy-to-let (BTL) product to support landlords looking for a competitive pay rate and reduced upfront costs.


The product has a rate of 3.19 per cent and is available up to 75 per cent loan to value (LTV). It has a maximum loan size of £1m.

Individual landlords, limited companies and portfolio landlords are eligible for the product, which has a reduced product fee of one per cent and £500 cashback on completion.

There is no cap on background portfolio size of the borrowers, although Foundation does impose a maximum of £3m on most cases.

The ICR for the product is 125 per cent for limited companies and basic-rate taxpayers, and 145 per cent for others.

Foundation Home Loans commercial director George Gee (pictured) said: “Five years ago there was a popularity shift from two to five-year fixed rates, and we anticipate that to continue for upcoming mortgage transactions in 2021.

“Remortgage activity has been subdued during the pandemic to date but we are seeing an increasing number of landlord borrowers seeking to utilise their existing property portfolio in order to release equity to fund future purchases.”

He said that the product would support landlord looking for a competitive pay rate and rental calculation for five years, with reduced upfront costs.


Paragon brings in four products aimed at portfolio landlords

BTL specialist Paragon has introduced four 75 per cent LTV products, which are available for both purchase and remortgage, with rates starting from 2.75 per cent.

The products are available for personal and limited company borrowing and include a pair of two-year fixed products and two five-year fixed products.

This includes a two-year fixed at 75 per cent LTV for single self-contained (SSC) units which has a rate of 2.75 per cent.

A two-year fixed at 75 per cent LTV for houses in multiple occupations (HMO) will have an initial rate of 2.85 per cent.

The lender has also brought in a five-year fixed for SSC and HMO properties, which has a rate of 3.1 per cent and 3.34 per cent respectively.

The two-year fixed products have a product fee of one per cent, whilst the five-year fixed products have a product fee of two per cent. All products have free valuations and £750 cashback.

Paragon Bank’s director of mortgage sales, Moray Hulme, said: “With the stamp duty holiday tapering down at the end of the month, landlords will be looking for competitive rates as they seek to add new property to their portfolio.

“We are confident these limited-edition rates will be popular with our portfolio landlord customers seeking to purchase new properties or remortgaging existing deals.”

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