According to the lender, the new Foundation product is part of its F1 range, is offered at 3.39% for five years up to 75% LTV, and as well as no product or application fees, comes with one free standard valuation, which is available for both purchases and remortgages.
The product is available to both individual and limited company portfolio landlords and has a maximum loan of £750k. The rental cover requirement is calculated at payrate, and stress-tested at 125% for limited companies and basic rate taxpayers, and 145% for all others.
Foundation do not limit the portfolio size, subject to a maximum of £5m with the lender. Advisers and their portfolio landlord borrowers may also be able to take advantage of Foundation’s reduced document requirements when the portfolio is submitted at the outset.
George Gee, Commercial Director at Foundation Home Loans, said: “When it comes to portfolio landlords, whether they are refinancing existing properties or adding additional ones, a major consideration is keeping their upfront costs to a minimum, which is why we are offering these highly-competitive Limited Edition Portfolio Landlord products without the expense of product fees, application fees or standard valuation cost, for purchases as well as remortgages.
“Our recent research, in partnership with BVA BDRC, revealed that even with the passing of the stamp duty holiday, a sizeable number of landlord borrowers still intend to add to their portfolios over the coming year, with the average number of properties they intend to buy close to two. Portfolio landlord borrowers are also more inclined to use limited company vehicles, and it’s therefore important we continue to offer a range of products that cater for these needs.
“Over the past few weeks, we’ve launched a number of Limited Edition product specials specifically for portfolio landlords and believe this will be a key growth area for the buy-to-let sector and those advisers active in this space.”
