According to the lender, the new products are a 2.99% two-year fix to 75% LTV with a 1% fee and an HMO 3.34% two-year fix, also to 75% LTV with a 1% fee.
Both products are available to limited company borrowers only are priced at 10 basis points below Foundation’s core range, with the product fee having been halved. There is a minimum/maximum loan size of £200k/£1m, and each is offered at Foundation’s ICR of 125% at 5.5%.
Foundation said these highly-competitive two-year rates and fees offer both limited company purchase and remortgage borrowers more choice, and it is anticipating growing demand over the months ahead as borrowers seek to refinance and add to portfolios.
George Gee, Commercial Director at Foundation Home Loans, said: “Over the past five years, a consistent two in ten landlords have utilised limited companies to purchase further properties in their portfolio, and we anticipate this cohort will be highly active in 2021.
"It’s therefore important that intermediaries can access price-competitive limited company products and specialist criteria, so we are cutting rates and fees on these two-year fixed-rate products to provide greater choice specifically for refinancing or purchasing within a limited company structure.
"2021 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 those landlords using their limited company structures to develop their own property-owning footprint further.”
