According to the lender, the no-fee limited edition products have no product or application fees and come with a free standard valuation for purchases as well as remortgages. The two-year product is priced at 3.24% fixed and the five-year at 3.34% fixed, both up to 75% LTV, and are designed to appeal to landlords looking to purchase or refinance with low up-front costs.
The flat-fee products are available up to 65% LTV. The two-year product is priced at 2.79% fixed and the five-year at 2.99% fixed with a fee of £1,995 which may offer good value particularly for the higher loan amounts – they are available up to £500k.
At Foundation, ICR rental cover is calculated at pay rate on five-year fixes and the notional rate of 5.5% for two-year products and is stress tested at 125% for limited companies and basic-rate taxpayers or 145% for other landlord types.
George Gee, Commercial Director at Foundation Home Loans, said: “These new limited edition buy-to-let products are highly competitive on both rate and fees, providing an attractive overall total cost to those landlords either seeking to add to portfolios or to refinance.
“Given that we have no limit to the size of the background portfolio of the client – subject to £5m borrowing with Foundation – we believe these products offer intermediaries a good value option for their portfolio and non-portfolio landlords.
“The buy-to-let market is a key focus for Foundation and these new limited editions ensure we continue to deliver on keeping upfront costs low for borrowers and provide highly competitive rates for landlords who want to make the most of the current market conditions and increase the size of their portfolios.”
