The specialist lender, available only through intermediaries, revealed the new product, called ‘ERC 3', will be offered at a fixed rate of 3.30% for 65% LTV and 3.55% for 75% LTV, with no early repayment charges after three years.
Launched as part of Foundation’s Tier 1 product range - for borrowers with a near-perfect credit record – ‘ERC 3’ is available to portfolio and non-portfolio landlords, including those financing through a limited company vehicle.
Jeff Knight, Director of Marketing at Foundation Home Loans, said: “This new product complements our existing range of products, and provides more choice for landlord clients looking for price certainty combined with the flexibility to exit their deal after a three-year period when early repayment charges will not apply.
We’re all acutely aware of the level of uncertainty that exists in both politics and around the economy at the moment, and therefore products such as ERC 3 provide that longer-term security, in terms of mortgage payments, for at least a three-year period, at which point the borrower and their adviser can review their situation and make their decisions.
We believe Foundation offers intermediaries a comprehensive buy-to-let product range and we would urge advisers to speak to their BDMs to see how this product might work for their clients and how we can support greater growth of their buy-to-let a proposition.”
