View more on these topics

Foundation Home Loans begins lending to first-time landlords

Foundation Home Loans has started 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 rate is higher.

The maximum LTV for both products is 75 per cent and both products are available on a repayment or interest-only basis. Loans are available between £50,000 and £500,000.

FHL business development director Paul Brett says: “At a time when many lenders are concentrating on ‘professional’ landlords, we see this underdeveloped 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 seventy thousand 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 which is as dynamic and innovative as FHL.  The launch of their new first-time landlord proposition is testament to their commitment to whole market.”

FHL launched into the buy-to-let market in February.

Recommended

Altmann-Ros-2010-700x450.jpg
4

Govt to appoint minister to stop age discrimination in mortgage lending

The Government will appoint a minister to stop lenders unfairly discriminating against older borrowers if it wins the next election. Ros Altmann, the Government’s older workers’ champion, will be made a peer and appointed as a minister responsible for financial consumer protection and education, if the Conservatives are in government after the election. Part of […]

Whittaker_David_2015

Two-thirds of BTL loans are remortgages

Remortgaging accounts for two-thirds of the buy-to-let market due to record low mortgage rates, according to Mortgages for Business. The firm’s latest Buy to Let index shows 66 per cent of ‘vanilla’ buy-to-let loans were remortgages in the first quarter of 2015, rising from 62 per cent in Q4 2014. The proportion for houses in […]

Handshake-Business-Finance-Deal-Corporate-700.jpg

NACFB pilots commercial broker apprenticeship scheme

The National Association of Commercial Finance Brokers is piloting its first-ever apprenticeship scheme in collaboration with Hitachi Capital Business Finance. In the first year only one candidate will be put through the scheme, although more may be put through training once the pilot has completed. HCBF will cover the cost of the training, which will include […]

Crystal Specialist Finance

Crystal Mortgages rebrands to become Crystal Specialist Finance

Packager Crystal Mortgages has rebranded as Crystal Specialist Finance. The Midlands-based firm has identified five areas it operates in – mortgages, bridging, commercial mortgages, development funding and second charges – and has created a specialist team for each. Managing director Joe Breeden says: “The name had become constrictive over the past decade as we moved […]

Newsletter

News and expert analysis straight to your inbox

Sign up