Background portfolios must have a maximum aggregate portfolio LTV of 75%; this is calculated across the whole portfolio including unencumbered properties and a minimum aggregate rental cover ratio will be 125%, stressed at 5.5%
Borrowers will continue to be allowed unlimited background portfolios and finance up to £2m with Foundation.
Jeff Knight (pictured), director of marketing at Foundation Home Loans, said: “Our research, undertaken amongst intermediaries and portfolio landlords, highlighted a need for a proposition that is simple and pragmatic – something that has always been at the heart of our approach. Therefore, we have not had to change much at all and will continue to provide a straightforward proposition to intermediaries.
“Indeed, portfolio landlords already represent around 50% of our business, so unlike other lenders, this is very much business as usual for us and our intermediary partners.”