Foundation Home Loans has launched a limited edition buy-to-let product at 4.99% fixed for five years to 75% loan-to-value, with a product fee of 2%.
The loan is part of the lender’s F1 product range, for borrowers with an almost clean credit history, while it comes with a free valuation.
The maximum loan is £1m, and the product is available for both limited company or individual borrowers looking to either remortgage or purchase.
The Income Coverage Ratio (ICR) is calculated using the pay rate of 4.99% and stress tested at 125% for limited companies and basic rate taxpayers and 145% for other landlord types.
George Gee, managing director, commercial, at Foundation Home Loans, said: “We are pleased to be able to offer to market a competitive product to give our intermediary partners and their clients a sub-5% rate choice combined with a strong service offering.
“One of our key focuses over the past year has been maintaining service levels, and structuring the business to ensure we can continue to operate at the highest standard. We know that a one-day turn-around is far from the norm right now, and we want advisers and their clients to be aware this is available with Foundation and we have a full buy-to-let and residential product range – including this new product – that they might wish to take advantage of.
“We would therefore urge advisers with suitable clients to look at our product proposition, but also the service we can currently deliver, to ensure their clients get the finance they need in the timescale they desire.
“Foundation has the strongest appetite to lend and a commitment to service that should make the lives of advisers and their clients a lot easier.”
Foundation said it was able to bring new buy-to-let products to market due to recent movements in swap rates, and is well placed to welcome applications due to very strong service levels.
The lender said it has one-day turnaround times across the board for buy-to-let applications.