Foundation Home Loans has begun lending to first-time landlords.
The intermediary-only lender has launched a 3.96 per cent two-year discount rate mortgage and a 4.19 per cent two-year fixed-rate mortgage. The products are aimed at first-time landlords and the lender will not accept borrowers who do not own their own property.
Gross rental cover must be at least 125 per cent of the pay rate, or 5.25 per cent, whichever is higher.The maximum LTV for both products is 75 per cent and both are available on a repayment or interest-only basis. Loans are available from £50,000 to £500,000.
FHL business development director Paul Brett says: “At a time when many lenders are concentrating on ‘professional’ landlords, we see this under-developed sector as one where we can really make a difference for advisers and their clients.
“First-time landlords represent a challenge to many lenders, whose reliance on credit scoring makes them wary of breaking new ground. In contrast, FHL is able to use our data on 70,000 buy-to-let loans to create competitive yet sound products supported by experienced underwriters.”
Buy to Let Club managing director Ying Tan says: “We are delighted to be working with a lender that is as dynamic and innovative as FHL.
“The launch of its first-time landlord proposition is testament to its commitment to whole-of-market.”
FHL launched into the buy-to-let market in February.