Foundation Home Loans, a specialist lender in the UK, has recently introduced a new buy-to-let product that is being hailed as a “significant enhancement” to their core range. This new offering is particularly noteworthy because it is available in the seldom-used 85% loan-to-value (LTV) space, a sector that is rarely occupied by lenders.
The F1 buy-to-let product comes with a five-year fixed rate of 6.49%, and it’s available with a minimum loan size of £100,000. The product has been designed with flexibility in mind, as it also comes with no product fee, making it an appealing option for landlords looking to avoid extra upfront costs.
One of the key benefits of this product is that it is available to both individual landlords and limited companies. This broadens the appeal of the product and allows for more flexibility, catering to a variety of borrowers, whether they are first-time landlords or seasoned investors.
In terms of eligibility, there is no minimum income requirement attached to the product. This means that it could potentially benefit a wider pool of borrowers who may otherwise have been excluded from other similar mortgage products. This feature is especially useful for individuals looking to start or expand their buy-to-let portfolio without being tied to strict income thresholds.
Another major advantage is the fast processing times that Foundation Home Loans is known for. Brokers will benefit from the lender’s same-day decision in principle (DIP) turnaround times, which should help speed up the application process significantly. This is a feature that is often valued by both brokers and borrowers in an increasingly competitive market.
The new product is designed to cater to a wide range of borrowers, making it ideal for both first-time landlords and those with more experience in property investment. For first-time landlords, the product offers an attractive option for getting onto the property ladder, while seasoned investors can use it to release equity or expand their existing portfolios.
With this product, Foundation Home Loans is positioning itself as one of the only two lenders currently offering an 85% LTV buy-to-let mortgage. This sets them apart from many other lenders who tend to offer lower LTV options, making this product an appealing choice for borrowers who may not have the large deposit typically required for a buy-to-let mortgage.
Tom Jacob, the Director of Product and Marketing at Foundation Home Loans, spoke about the significance of the launch, saying: “Extending our core buy-to-let offering into the 85% LTV band represents a significant step for the business and a big moment in BTL lending. It provides landlords and our intermediary partners with a compelling, low-deposit route to access funding in a market where affordability can often be a barrier.”
Jacob continued, highlighting the challenges that many landlords face in the current environment: “This product addresses the issue of affordability, which is particularly relevant in today’s housing market. For many borrowers, the ability to reduce upfront costs and maximise leverage is key to getting into the market, and this product makes that possible.”
The 85% LTV product offers an opportunity to landlords to secure funding with lower deposits than traditionally required, which can be especially beneficial for those looking to add to their property portfolios without the need for a large upfront outlay.
Foundation Home Loans’ decision to launch this product also comes at a time when the UK buy-to-let sector is facing increasing pressures, from rising interest rates to economic uncertainty. With more landlords seeking flexible, cost-effective ways to invest in property, this product aims to meet the evolving needs of the market.
The product is also set to be an attractive option for brokers, given the fast processing times and no product fees. With the current demand for buy-to-let mortgages, brokers are often seeking lenders who can provide competitive rates and quick decision-making, and this product fits that bill perfectly.
In addition to being beneficial for brokers and first-time landlords, the product is also likely to be an appealing choice for more experienced property investors. Whether looking to expand an existing portfolio or to refinance existing properties, the F1 buy-to-let product can provide the necessary funds with the added bonus of a competitive fixed rate.
Looking ahead, Foundation Home Loans expects the new 85% LTV product to be extremely popular among investors who want to keep their upfront costs low. Given the competitive nature of the property market, particularly in terms of buy-to-let properties, it’s anticipated that the product will fill a gap in the market and address a real need for landlords.
The flexibility of the product, including its availability to both individual landlords and limited companies, provides added convenience and options for those looking to enter or expand in the buy-to-let market. With no minimum income requirement, it makes the process even more accessible for a wide range of potential borrowers.
Jacob concluded by expressing the lender’s confidence in the success of the product: “Whether it’s a client’s first rental property or an addition to an existing portfolio, this product opens up new borrowing opportunities with the reassurance of a competitive, fee-free rate and our trademark fast turnaround times.”
As demand for buy-to-let properties continues to grow, Foundation Home Loans’ introduction of the 85% LTV product is likely to have a significant impact on the market. With a competitive rate and no product fees, this could prove to be a popular choice for many landlords looking to access funding quickly and efficiently.
In summary, the F1 buy-to-let product from Foundation Home Loans represents a strategic and timely offering in the current market. Its high LTV, competitive rate, and fee-free structure are likely to attract both new and experienced landlords, providing them with an attractive option to fund their buy-to-let ambitions.
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