Foundation Home Loans has launched a new 5-year fixed rate deal called standard plus, across its buy-to-let range, aimed primarily at portfolio and non-portfolio landlords.
It will only be available for a limited time, offers a competitive fixed rate of at 3.54% (fixed until 31/7/2023), is up to 75% loan-to-value and comes with a 2% arrangement fee.
The product is available to portfolio and non-portfolio landlords without any adverse credit within the last six years, except in some minor blip cases such as mail order, communications and utilities.
It has an interest cover ratio (ICR) of 145% x pay rate for individuals and 125% x pay rate for limited companies. The ERCs are at 5%, 4%, 3%, 2% or 1% of the loan.
Ray Boulger, senior technical manager at John Charcol, said: “If one is looking for the cheapest in the market at 75% LTV, there’s plenty of cheaper deals but Foundation has got a criteria that allows lots more flexibility than other lenders such as lending to limited companies.
“Two of the benefits are the rental cover is calculated as pay rate and they it is lending to limited companies on the same terms.
“By using the pay rate as the interest rate for the rental cover, it’s going to be easier for people to reach the 75% LTV.”
Andrew Ferguson, commercial director at Foundation Home Loans, said: “We are committed to providing competitive products and service to intermediaries, designed to offer them far more choice and ease the process of working with their landlord clients.
“With the rental assessment based on the pay rate, we are sure these new products will appeal to many portfolio and non-portfolio landlords.”