Foundation Home Loan has introduced a new five-year fixed rate product solely for buy-to-let limited company applicants.
The new mortgage is available as part of Foundation’s Tier 1 product range, available to those limited company borrowers with a near-perfect credit record, and can be accessed by first-time landlords, non-portfolio and portfolio landlords.
The five-year fix is priced at 3.35% up to 75% LTV until the 31st July 2024, with a maximum loan available up to £1m and the product comes with a £2,495 product fee with a rental income calculation of 125% at pay rate.
There is maximum age limit for limited company applicants. It is available through Foundation’s distributor network including all mortgage clubs, networks and key packagers.
Foundation says the launch of this new product comes off the back of a sizeable increase in its limited company buy-to-let business and a focus on broadening the reach of its proposition particularly focusing on portfolio landlords.
Earlier this month, research conducted by Foundation and BVA BDRC showed that over a half of all landlords intend to buy their next buy-to-let property through a limited company vehicle, rising to seven in 10 for landlords with over 11 properties in a portfolio.
Jeff Knight, director of marketing at Foundation Home Loans, said: “The ongoing move towards greater levels of limited company buy-to-let business is certainly one we are seeing at Foundation. We therefore want to ensure advisers have access to products which will suit the growing number of borrowers seeking purchase and remortgage finance through such vehicles.
“This 3.35% five-year fix fits neatly into our Tier 1 range and allows us to broaden our offering for those landlord clients seeking longer-term stability for their payments.
“Our recent research showed the appetite and ambition, particularly of portfolio landlords, to purchase more properties via limited companies and the expertise we have at Foundation should help advisers with such clients to find a product solution which is right for them.”