Foundation Home Loans has announced changes to its interest coverage ratios (ICR) and maximum loan sizes across its BTL product range
The intermediary-only specialist lender has introduced a new ICR for basic-rate taxpayers which reduces from 145% of rental income to 125%.
The ICR for limited company borrowers remains unchanged at 125%.
Foundation Home Loans has increased maximum loan sizes across its entire product range (including HMOs, multi-unit blocks and short-term lets) for both 65% and 75% LTV.
Maximum loans have increased to £2m for 65% LTV (large loans) from £1.5 million; to £1.5m from £1m for other 65% LTV products; and to £1m from £750,000 for all 75% LTV products.
The lender’s maximum loan size for 80% LTV — which is only available in its F1 range — remains the same at £500,000.
Jeff Knight, director of marketing at Foundation Home Loans, said: “Foundation’s focus is on marrying flexibility and accessibility with responsible lending…
“…We believe these measures help advisers and their landlord clients to get where they want to be.”
