Foundation cuts ICRs and ups LTVs

  • 11/06/2020
  • 0
Foundation cuts ICRs and ups LTVs
Foundation Home Loans has cut its interest cover ratio (ICR) for limited companies and basic rate taxpayers and also resumed accepting applications from first-time landlords.


The changes come as part of a buy-to-let product and criteria overhaul by the lender which has increased its maximum loan to value (LTV) and reduced rates.

Limited company and basic rate taxpayers will now need a 125 per cent ICR at 5.5 per cent, rather than the 145 per cent which remains in place for higher rate taxpayers.

Foundation has increased its maximum LTV to 75 per cent, including for houses in multiple occupation (HMOs) and multi-unit blocks (MUBs), as it continues to return towards its previous lending proposition.

As part of the rate cuts, two-year products now start at 2.94 per cent and five-year deals from 3.54 per cent.

Foundation has launched a five-year fixed fee product for F1 borrowers, aimed at borrowers looking for larger loans. It is offered at 3.84 per cent up to 65 per cent LTV or 4.29 per cent up to 75 per cent LTV and comes with a fixed fee of £1,995.

It has also launched a packager exclusive range with no early repayment charges at up to 75 per cent LTV with rates from 3.34 per cent up to £1.5m and a two per cent fee added.

Marketing director Jeff Knight (pictured) said the changes represented the next step forward for Foundation in the buy-to-let space.

“Since returning to new lending last month, we’ve seen a growing interest from advisers and landlords as they seek to both refinance and add to their portfolios,” he said.

“As the market continues to change, we have taken the decision to enhance our product offering, broaden our criteria and introduce new products which we believe provide a greater degree of flexibility for landlords whose circumstances may well change over the next 12 months.”


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