Foundation launches five-year fix with three-years’ ERCs for BTL

The new product, named ERC3, was designed to appeal to landlords seeking rate certainty while offering the flexibility to switch in the future. 

The five-year fix rate is offered at 3.3 per cent at 65 per cent loan to value (LTV) and 3.55 per cent at 75 per cent LTV, with no ERCs after three years.

The mortgage was added to the lender’s tier one product range for borrowers with a near-perfect credit record. It will be available to portfolio and non-portfolio landlords as well as limited companies. 

“We’re acutely aware of the level of uncertainty in politics and the economy at the moment,” said Jeff Knight, director of marketing at Foundation Home Loans (pictured). 

“The ERC3 product provides security in mortgage payments for three years, at which point the borrower and their adviser can review their situation and make their decisions.

“We urge advisers to speak to their business development managers to understand how the product might work for their clients,” Knight added.