Key points –
- Foundation Home Loans has launched new five-year fixed-rate mortgages specifically for portfolio landlords, featuring lower rates and higher fees.
- These products allow for unlimited properties in a landlord’s portfolio, with a maximum loan exposure of £5 million and a maximum aggregate borrowing of £3 million.
- The launch follows FHL’s recent rate cuts on other Special products, underscoring their commitment to support the private rental sector and portfolio landlords.
Foundation Home Loans (FHL) has recently unveiled a new range of products tailored specifically for portfolio landlords. This move aims to provide enhanced support for these key players in the private rental sector.
What’s New?
The newly launched products fall under FHL’s F1 tier, which is designed for borrowers with nearly impeccable credit histories. These are five-year fixed-rate mortgages, presenting a stable and predictable financing solution for landlords.
Rates and Loan-to-Value (LTV) Details
- At a 65% LTV, the rate is set at 5.24%.
- For a 75% LTV, landlords can expect a rate of 5.34%.
Both options come with a 6% fee, which is a higher fee but comes with the benefit of a lower rate. This structure is particularly beneficial for landlords looking to meet affordability criteria and support their property purchasing or refinancing endeavors.
Bigger Portfolios, Bigger Opportunities
One of the most significant aspects of these products is the flexibility they offer in terms of portfolio size. Landlords can have an unlimited number of properties in their portfolios. However, with FHL, the maximum loan exposure is capped at £5 million. Additionally, for these special products, the maximum aggregate borrowing is limited to £3 million.
Recent Developments
This launch follows FHL’s recent decision to reduce rates at the end of November on other Special products, both in the buy-to-let and owner-occupied ranges. This indicates FHL’s ongoing commitment to providing competitive and accessible financial products for the housing market.
Tom Jacob, the Director of Product and Marketing at Foundation Home Loans, emphasised the critical role of portfolio landlords in the private rental sector. He noted, “Portfolio landlords are a key borrower demographic within buy-to-let, and much of the property supply within the private rental sector is reliant on these borrowers.”
Jacob further explained that these new products are designed to offer a lower rate and higher fee option. This approach is to help landlords meet their affordability targets and to aid in their property purchase or refinancing needs.