Foundation Home Loans unveils 2.89% two-year fix

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Foundation Home Loans has launched a two-year fixed rate deal aimed at professional landlords borrowing large amounts.

The limited edition buy-to-let product has a rate of 2.89 per cent with a 1 per cent arrangement fee.

The minimum loan size is £200,000. The product is available at a rental calculation of 125 per cent x 5.5 per cent notional rate for limited companies and 145 per cent x 5.5 per cent notional rate for individuals.

Foundation Home Loans marketing director Jeff Knight says: “Despite seeing a major shift towards five-year fixed rate deals in recent months, largely due to the way rental calculations are working, our recent focus groups highlighted that many landlords do not want to be tied into these longer term deals.

“This shorter term product will therefore appeal to those portfolio landlords who prefer greater flexibility with their products.”