Landlords looking for a good deal on a five-year fixed-rate mortgage may be in luck! Buy to Let by Foundation, a specialist lender for landlords, has launched a new limited-edition product just for them.
This deal is part of their “F1” tier, which is specifically designed for landlords with a nearly perfect credit history.
What’s the Deal?
Here’s the summary:
- 5.74% interest rate: That’s a pretty competitive rate for a five-year fixed deal in today’s market.
- Up to 75% loan to value (LTV): This means you can borrow up to 75% of the property’s value, leaving you with a decent deposit to put down.
- 1.75% fee: There’s a small fee to pay upfront, but it’s still a competitive offer.
- Available for all landlord types: This deal applies to individual landlords, those with a portfolio of properties, and even first-time landlords. You can use it for both purchasing a new property or remortgaging an existing one.
Rental Cover Ratio
The deal also comes with a rental cover ratio. This means that your rental income needs to cover a certain percentage of your mortgage payments:
- 125%: This is required for limited company and basic-rate taxpayers.
- 145%: This is required for higher-rate taxpayers.
Why Is This a Good Deal?
Tom Jacob, Foundation’s Director of Product and Marketing, says this new deal is designed to help landlords who want to take advantage of the strong demand for rental properties.
He believes that landlords who can secure competitive mortgage deals will be able to offer high-quality properties to a growing pool of tenants, which in turn helps them secure better profits.
Foundation on the Move
This latest offer is just the latest in a series of changes that Foundation has made recently to help landlords. They have also:
- Lowered their core and specialist BTL rates by up to 0.5%.
- Introduced a new five-year fixed rate for portfolio landlords at 4.99%.
- Added short-term and holiday deals to their product range.
- Reduced fees across their BTL range.
So if you’re a landlord looking for a good deal, it’s worth checking out this limited-edition offer from Foundation Home Loans! They’ve been busy making some changes that might just be the perfect solution for you.