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Cov BS lowers reference rate for landlords; Foundation launches limited edition BTL deal – round-up

  • 17/03/2023
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Cov BS lowers reference rate for landlords; Foundation launches limited edition BTL deal – round-up
Coventry Building Society has reduced the stress rate on its buy-to-let mortgages.

This will apply to borrowers who are looking to purchase, remortgage or port an existing mortgage. 

For all customers on a five-year fixed rate, the reference rate is 5.5 per cent or the product rate – whichever is higher. 

For like-for-like remortgages which are fixed for two or three years, the reference rate is whichever is higher out of a 5.5 per cent rate or the product rate plus one per cent. 

A reference rate of either seven per cent or the product rate plus two per cent, whichever is higher, applies for purchase applications which are fixed for two or three years. 

There is no reference rate for like-for-like product transfers. 

Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “We’ve recalibrated our buy-to-let reference rate to reflect current market conditions, which may be of particular help to those looking for a pound-for-pound remortgage. 

“We’re committed to helping our intermediary partners look after their clients, and equally want to support the private rental sector to help provide homes for those choosing to rent.” 


Foundation Home Loans launches limited edition products  

Foundation Home Loans has added two limited edition products to its buy-to-let range. 

These are available in its F1 tier which is for borrowers with an almost clean credit history. 

The products are for purchase and remortgage and are open to both individual or limited company borrowers. 

There is a two-year fix up to 75 per cent LTV with a rate of 5.94 per cent. This has a product fee of £1,995. There is also a five-year fix, available up to 75 per cent LTV, with a rate of 5.59 per cent and a £4,995 product fee. 

Maximum loans of £1.5m apply to each product. 

George Gee, managing director (commercial) at Foundation Home Loans, said: “Foundation is always looking at product options for landlord borrowers, particularly when it comes to fixed rates where customers are able to be crystal clear on their monthly mortgage payment amounts, in this case, over a two or five-year period.  

“With these limited edition specials we’ve been able to offer competitive fixes with a fixed product fee, which will help manage upfront costs while also helping some landlords in terms of any affordability challenges they might be having. We’ll continue to look regularly at what we can offer in the buy-to-let space and continue to support advisers who have landlord clients with more complex and specialist needs.” 

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