Foundation Home Loans and The Mortgage Works expand BTL offering

  • 22/07/2021
  • 0
Foundation Home Loans and The Mortgage Works expand BTL offering
Foundation Home Loans has introduced a set of two-year fixed deals at 75 per cent loan to value (LTV) product targeted at portfolio landlords.


The products are limited edition and have no product fee, no application fee and come with one standard valuation.

The first product is available at 3.24 per cent with a maximum loan of £750,000 and is part of the lender’s core F1 range.

The second product has a rate of 3.44 per cent, and also has a maximum loan size of £750,000, and is aimed at landlords borrowing against standard houses of multiple occupancy (HMO) of up to six occupants.

They are both available for purchase and remortgage, while individuals and limited companies are eligible.

The rental cover requirement is at a notional rate of 5.5 per cent and is stress tested for 125 per cent for limited companies and basic rate taxpayers, and 145 per cent for all other borrowers.

Foundation Home Loans commercial director George Gee (pictured) said the products would give portfolio landlords more options, especially if they wanted a shorter fixed term or wanted to finance a specific property type.

He added: “Upfront costs can prove a real issue for some landlords who are looking to secure a competitive rate and can offer especially good value to those purchasing or remortgaging multiple properties.

“By introducing these no-fee products – which include one free standard valuation, no product fee and no application fee – we are aiming to deliver a product range which offers portfolio landlords access to greater flexibility.”


The Mortgage Works brings in limited company products and cuts rates

The Mortgage Works has brought in a two-year and five-year fixed rate limited company mortgages, with free legal incentives, to minimise upfront costs.

Both products have a rate of 3.39 per cent and are available up to 75 per cent LTV. They are both subject to a £1,995 fee.

The products come with free standard valuations and The Mortgage Works will appoint the conveyancer, cover the professional fee and standard disbursements.

The lender has also cut rates for five-year fixes with the limited company option up to 75 per cent LTV going from 3.59 to 3.09 per cent. It has a fee of £1,995 and free standard valuation.

Its BTL remortgage up to 65 per cent LTV has been cut by 0.3 per cent, with rates now starting from 1.59 per cent.

The rates for the lender’s BTL remortgage up to 75 per cent LTV have decreased by 0.4 per cent with rates starting from 1.79 per cent.

Both the remortgage products have a two per cent fee and free valuation and legals.

The Mortgage Works head, Daniel Clinton, said: “There are a number of costs to consider when investing in a BTL property, particularly for incorporated landlords where conveyancing fees can be higher.

“Our new purchase products with free standard legal and valuation fees aim to help minimise upfront costs.

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