Foundation Home Loans has launched 3-year fixed rates within its buy-to-let range with rates starting at 3.19% with an arrangement fee of 1%.
The products are available to limited companies and individuals, with the rates the same for both client types.
They have an interest cover ratio (ICR) of 125% x 5.5% for limited companies and 145% x 5.5% for individuals. These ICRs apply to all applicant and property types including houses in multiple occupancy (HMOs) and multi-unit blocks (MUBs).
Andrew Ferguson, commercial director at Foundation Home Loans, said: “With ongoing uncertainty in the market and the full effect of the buy-to-let tax changes materialising in 2021, we are confident these rates will give landlords an alternative solution to 2 and 5-year deals, particularly as there is a real lack of 3-year rates in the market.
“The products cater for all property types and have a competitive fee. We also believe that these rates will be popular amongst limited company clients, where we have been seeing an increase in demand.”
The limited edition product is designed for landlords who fit the standard plus criteria, by having clean credit records or are financing a house in HMOs or MUB.