This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Today, Foundation Home Loans is launching three and five-year fixed rate buy-to-let (BTL) products to expand its current BTL Prime deals.
New BTL Fixed Rate Products Announced
The five-year fix uses a pay rate of 4.39% to measure rental yield, rather than the notional rate.
The new and updated products are as follows:
- Two-year fixed rate at 3.69%, down from 3.99% with an Early Repayment Charge (ERC) of 3%/2% and rental yield based on a notional rate of 5.25%.
- Three-year fixed rate at 3.89% with an ERC of 3%/2%/1% and rental yield based on a notional rate of 5.25%.
- Five-year fixed rate at 4.39% with an ERC of 5%/4%/3%/2%/1% and rental yield based on a pay rate of 4.39%.
- Variable rate at the London Interbank Offered Rate (LIBOR) +3.41% with an ERC of 3%/2% and rental yield based on a notional rate of 5.25%.
Paul Brett, Foundation’s Business Development Director, believes that the three and five-year fixes fill a significant gap in the market.
He explains: “We have reduced rates on products and also introduced a new three and five-year product, which our introducers had identified as an important addition we needed to make.
“By allowing the rental yield calculation of 4.39% rather than the notional rate, we believe this will allow more customers to benefit from our compelling lending proposition. I believe that introducers will be delighted by these changes, which will appeal to more landlords looking to lock into a longer term product.”1
1 http://www.propertyreporter.co.uk/finance/foundation-home-loans-launches-new-fixed-rates.html
