Two lenders are making a pitch for landlord borrowers as the buy to let mortgage market continues to be highly competitive.
Buy to Let by Foundation has launched a new Limited Edition, five-year fixed-rate product within the F1 tier – for landlord clients with an almost clean credit history – the new product is available up to 75% LTV and has a rate of 5.74%, with a 1.75% fee.
It’s offered to individual, portfolio and first-time landlords, for both purchase and remortgage activity and comes with a rental cover ratio of 125% at pay rate for limited company and basic-rate taxpayers, and 145% at pay rate for higher-rate taxpayers.
The launch of this new product follows ‘Buy to Let by Foundation’s’ refresh of both its Core and Special buy-to-let products at the end of last month.
Tom Jacob, Foundation Home Loans’ director of product and marketing , says: “We’re very pleased be able to launch this brand new 75% LTV Limited Edition five-year fix which comes with a highly competitive 5.74% rate, and a low fee, which should appeal to advisers and their landlord clients, whether seeking to purchase or remortgage. Our intermediary partners continue to seek a wide array of options across all different types of landlord clients, whether they are experienced portfolio players or indeed first-time investors making their first forays into property investment.
“What’s clear from the UK private rental sector is that demand continues to exceed supply by some distance, and if landlords can secure competitive mortgage finance, then they are able to offer quality properties to a growing pool of tenants, and in the process secure the yield and profit they need. At Foundation we’ll continue to explore a wide range of product options for landlords, whether for those who are close to the mainstream, those looking for more specialist finance, or those seeking to purchase or refinance more specialist property types.”
Meanwhile CHL Mortgages has launched a limited edition range of two-year fixed-rate buy-to-let products.
The range is open to individual and limited company landlords with rates from 4.32% at 75% loan to value, with a choice of either a 2%, or 5% fee.
It adds that landlords looking to invest in houses in multiple occupation or multi-unit freehold blocks with up to six bedrooms, or units, rates start at 4.33% at 75% LTV with a 5% fee.
CHL Mortgages commercial director Ross Turrell says: “Our new limited edition range with competitive rates and a choice of fee options gives our broker partners even more ways to support their landlord customers. This launch reinforces our commitment to the intermediary market by ensuring they’ve got the products at their disposal to meet their customers’ needs.”
