Foundation has announced a new five-year BTL deal aimed at landlords looking for rate certainty as well as flexibility
Specialist lender, Foundation Home Loans, has announced that it has launched a new five-year, buy-to-let product aimed at landlords who want rate certainty plus the flexibility to potentially switch to another rate/lender before the full five-year term.
The five-year mortgage is offered at a fixed rate of 3.45% for 65% LTV and 3.74% for 75% LTV but only has early repayment charges (ERCs) applicable for the first three years of the mortgage – charged at 5%, 4% and 3% respectively, with a product fee of 1.75%.
After this period, the borrower would be able to remortgage to another product without having to pay any ERCs. The ‘Fix to Flex’ product is suitable for individual, limited company, first-time and portfolio landlords.
Foundation Home Loans is a specialist lender, available only through intermediaries and designed for clients with more complex needs.
Commercial Director at Foundation Home Loans, Andrew Ferguson said that having talked a lot to their intermediary partners, it became very clear that their landlord clients are looking for certainty in an uncertain economic environment. At the same time, no-one can be sure of what the mortgage market might look like in three/four/five years’ time, and many landlords would effectively like the best of both worlds.
That means they want a highly-competitive long-term fixed rate, but they also want the opportunity to remortgage and refinance should their circumstances’, or the market, change.
With this ‘Fix to Flex’ product they can provide just that. Whether they’re an individual, purchasing or remortgaging through a limited company, a first-time or portfolio landlord, this product ensures that – after three years – advisers’ clients will not have to pay an ERC should they wish to seek an exit whilst ensuring they know exactly what they’re going to be paying every month during that period.
Part of the reason why landlords’ – or indeed any borrower – often don’t like to fix for too many years is they fear being tied into deals, and having to pay significant charges, should they need to review their mortgage and change deals. This product provides a fully-workable solution for such concerns and there is a clear demand for a mortgage which provides both certainty and flexibility.