Foundation Home Loans has released a new five-year buy-to-let let mortgage deal that features zero ERCs in the final two years of its term.
Billed as ‘Fix to Flex’, the mortgage is designed, Foundation says, for borrowers who seek certainty alongside a desire to move with changing market conditions.
The product is available at up to 75 per cent LTV, is fixed at 3.74 per cent and charges a product fee of 1.75 per cent. The first three years of the term carry an ERC of 5 per cent, 4 per cent, and 3 per cent.
The lender reports that cases will be underwritten as a five-year fixed rate mortgage, assessed on pay rate.
Being part of the firm’s F1 BTL range, the product is targeted at existing and new clients on an individual, limited, first-time and portfolio basis.
Foundation Home Loans commercial director Andrew Ferguson says: “This product ensures that – after three years – advisers’ clients will not have to pay an ERC should they wish to seek an exit whilst ensuring they know exactly what they’re going to be paying every month during that period.
“We believe there is a clear demand for a mortgage which provides both certainty and flexibility. We’d urge advisers to contact the sales team at Foundation to see how this deal might be suitable for clients and we’ll continue to work with our partners to ensure they have a BTL product range which meets their client’s needs and requirements.”