Foundation Home Loans has launched a limited edition three-year fixed rate product for landlords.
The product is designed for landlords who fit Foundation’s “standard plus criteria”, by having a clean credit record, or are financing a house in multiple occupation or multi-unit block. The three-year deal is available to both limited companies and individuals, with the rates the same for both client types.
Rates start at 3.19 per cent (fixed until 31 January 2022) with an arrangement fee of 1 per cent. The product has an interest cover ratio of 125 per cent x 5.5 per cent for limited companies, and 145 per cent x 5.5 per cent for individuals. These ICRs apply to all applicant and property types, including HMOs and MUBs.
Foundation Home Loans commercial director Andrew Ferguson says: “With ongoing uncertainty in the market and the full effect of the buy-to-let tax changes materialising in 2021, we are confident these rates will give landlords an alternative solution to two and five-year deals, particularly as there is a real lack of three-year rates in the market.
“The products cater for all property types and have a competitive fee. We also believe that these rates will be popular amongst limited company clients, where we have been seeing an increase in demand.”