Foundation Home Loans (FHL) has reported that, since launching with pricing for its limited company buy-to-let product at the same rate as for its core range in December, enquiry levels have grown substantially.
“It is great to see another lender following our lead and cutting the cost of their limited company buy-to-let product and I am sure that where FHL leads, others will follow,” Simon Bayley, commercial director at FHL.
“There will be increasing interest in limited company buy-to-let products in 2016 and we don’t see why brokers and their landlord clients should be paying an interest rate premium, just because of the current limited availability of such products. Our aim is always to provide maximum value to clients and we shall continue to offer innovative products with pricing that is fair and consistent.”
Hans Geberbauer, FHL’s chief executive officer, added: “We looked at the data and felt we couldn’t justify a price premium for what is essentially the same credit risk. With FHL, landlords can focus on choosing the structure that best suits their needs without being penalised on the interest rate.”
Doug Hall, managing director at 3mc, one of FHL’s partners, said it was a welcome move by FHL and great news for the market.
“Limited company buy-to-let products are going to become very important this year and will definitely become more mainstream. FHL is to be applauded for its stance which is already being welcomed by landlords and their advisers,” he said.