A new two-year fixed rate mortgage aimed mainly at professional landlords borrowing large amounts has been launched by Foundation Home Loans.
The new buy-to-let product, which will only be available for a limited time, offers a rate at 2.89% with a 1% arrangement fee. The minimum loan is £200,000, with the product available at a rental calculation of 125% x 5.5% notional rate for limited companies and 145% x 5.5% notional rate for individuals.
Jeff Knight, marketing director at Foundation Home Loans, commented: “Our new mortgage product has been designed to serve the needs of the professional landlord.
“Despite seeing a major shift towards five-year fixed rate deals in recent months, largely due to the way rental calculations are working, our recent focus groups highlighted that many landlords do not want to be tied into these longer term deals.
“This shorter term product will therefore appeal to those portfolio landlords who prefer greater flexibility with their products.”
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