Foundation launches five-year fix for BTL limited company

  • 16/05/2019
  • 0
Foundation launches five-year fix for BTL limited company
Foundation Home Loans has introduced a five-year fixed rate product only for buy-to-let limited company applicants.


The product is available as part of Foundation’s Tier 1 product range to those limited company borrowers with a near-perfect credit record.

It can be accessed by first-time landlords, non-portfolio and portfolio landlords.

The five-year fix is priced at 3.35 per cent up to 75 per cent loan to value (LTV) until 31 July 2024, with a maximum loan available up to £1m.

The product also comes with a £2,495 product fee with a rental income calculation of 125 per cent at pay rate.

There is no maximum age limit for limited company applicants and it is available through Foundation’s distributor network including all mortgage clubs, networks and key packagers.

The specialist lender said this launch comes off the back of an increase in its limited company BTL business and a focus on broadening the reach of its proposition, particularly on portfolio landlords.

Jeff Knight, director of marketing at Foundation Home Loans (pictured), said research conducted by Foundation and BVA BDRC showed the appetite and ambition, particularly of portfolio landlords, to purchase more properties via limited companies.

According to this research, over a half of all landlords intend to buy their next BTL property through a limited company vehicle, rising to seven in 10 for landlords with over 11 properties in a portfolio.

Knight said: “The ongoing move towards greater levels of limited company buy-to-let business is certainly one we are seeing at Foundation.

“We therefore want to ensure advisers have access to products which will suit the growing number of borrowers seeking purchase and remortgage finance through such vehicles.

“This 3.35% five-year fix fits neatly into our Tier 1 range and allows us to broaden our offering for those landlord clients seeking longer-term stability for their payments.”

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