We all know that regulatory changes to lending in this country has made it harder for portfolio landlords to secure a mortgage, and that is why Foundation Home Loans has decided to launch a new cashback buy-to-let product to help ease the burden.
Fresh figures from Foundation Home Loans, based on research by BDRC Continental, shows that almost three quarters of portfolio landlords have found it more difficult to secure a mortgage since the Prudential Regulation Authority (PRA) changes were introduced at the end of September 2017.
Some 70% of landlords with over four buy-to-let mortgages and 51% with between one and three mortgages said they had found obtaining finance a challenge since the regulation came into effect last year.
Jeff Knight, marketing director at Foundation Home Loans, said: “The wave of changes to the market have proved challenging for portfolio landlords – and nearly three quarters have found it more difficult to secure a mortgage since the PRA changes were introduced.”
Foundation Home Loans has launched a new cashback buy-to-let product for portfolio landlords, available up to 70% loan-to-value, which offers £500 cashback following completion of the loan and has 1% arrangement fee.
It has a five-year fixed rate of 3.89% – available to both individuals and limited companies – and a five-year fixed rate of 3.99% for HMOs and MUBs.
The minimum loan size for this product is £150,000 and the maximum is £500,000.
Knight added: “We wanted to step up the level of support we offer, particularly when it comes to upfront costs, to help those choosing to re-mortgage or extend the size of their portfolio.
“This new cashback product is the latest step in our goal of becoming the go-to lender for portfolio landlords, and we are constantly reviewing our offering to ensure we achieve this.”