Foundation Home Loans has launched new two-year fixed-rate BTL specials and introduced changes to its new rental stress tests for short-term products.
Foundation Home Loans has launched new two-year fixed-rate BTL specials and introduced changes to its new rental stress tests for short-term products.
Among the new additions to its BTL range, Foundation has added:
• F1 two-year fixed rates starting at 5.39% and one free standard valuation
• F2 two-year fixed rates starting at 5.49%
• F2 HMO two-year fixed rates starting at 5.54%
These new additions come with a 1% fee and are designed to support the introduction of the lenders simplified ICR stress tests, for shorter-term products below a five-year term — including fixed rate and discounts which will now be based on the higher of either a pay rate plus 2% or a flat rate 8%.
The company launched other BTL rates earlier this month, including F1 five-year fixed rates — starting at 5.54% with a reduced fee of 1.5% and one free standard valuation.
George Gee, commercial managing director at Foundation (pictured above), said: “The launch of these new products in the two-year fixed-rate space for landlords — utilising the new stress test calculation — should open up new maximum loans for a number of borrowers wanting shorter term products.
“We anticipate there will be significant opportunities for us over the coming weeks to look at our existing BTL product offering and to reflect some of the shifts we are seeing in the market, and our own appetite to lend in this product sector.”
