Foundation adds pair of BTL deals for limited companies

The first is at 2.99 per cent up to 75 per cent loan to value (LTV) and with a fee of one per cent for standard properties.

Additionally, a house in multiple occupancy (HMO) version up to 75 per cent LTV with a one per cent fee is available at 3.34 per cent.

The products for limited company borrowers are designed specifically for clients who just miss out on mainstream credit or criteria.

They are priced at 10 basis points below the core Foundation range, and have half the usual product fee. They are available for purchase and remortgage.

The minimum loan size is £200,000 and the maximum is £1m for both products. They are offered at Foundation’s interest cover ratio (ICR) of 125 per cent at 5.5 per cent.

Foundation sets no limit on portfolio size, subject to a maximum of £3m with itself as lender.

The lender anticipated growing demand as landlords seek to refinance and add to portfolios.

“Over the past five years, a consistent two in ten landlords have used limited companies to purchase further properties in their portfolio, and we anticipate this cohort will be highly active in 2021,” said George Gee, commercial director at Foundation Home Loans (pictured).

“It’s important that intermediaries can access price-competitive limited company products and specialist criteria. Therefore we are cutting rates and fees on these two-year, fixed-rate products specifically to provide greater choice for refinancing or purchasing within a limited company structure.

“This year is shaping up to deliver a high-demand private rental sector, and landlords are already responding by looking for property opportunities. These products should support landlords using limited company structures to develop their property-owning footprint,” Gee said.