FHL overhauls limited company range

Ryan Bembridge

December 16, 2015


Foundation Home Loans has overhauled its limited company buy-to-let range so interest rates are the same as with its core offering.

FHL’s minimum valuation has been cut to £75,000 and the lender has introduced fixed end dates for fixed rate mortgages.

The lender has introduced a fixed arrangement fee of £1,999 for all loans under £250,000.

Simon Bayley, commercial director at Foundation Home Loans, said: “There is going to be plenty of interest in 2016 from landlords considering the best way to reduce their tax exposure using a limited company approach.

“After our initial pilot, we didn’t feel that pricing such a product at a premium was fair. Adding first-time landlords to our limited company range shows we believe landlords should be able to chose the best set-up that suits their circumstances and not be restricted to by the lenders.

“Apart from an additional fee due to the extra complexity of underwriting limited company SPV’s, we want brokers and their landlord clients to feel that there is a lender offering choice without charging a premium.”

He added: “We have reduced our minimum property valuation, allowing our introducers to target landlords looking at property away from the South East, where the income to investment ratio becomes more viable.

“Also, fixed rate terms in BTL have tended to be less than they claim to be. By moving to fixed end dates on fixed rate products, clients who DIP after 16th December for example, will have their fix until 30 April. With all these enhancements, we have also helped to simplify the product matrix, making it easier to navigate and choose the right solutions for your clients.”

“These changes put down a marker for 2016 and show just how receptive FHL will continue to be to the needs of landlords and their advisers.”

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