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.