Foundation Home Loans expands BTL Prime range

The 5 year fixed rate product also uses the pay rate of 4.39% to assess rental yield rather than the notional rate.

New product details are:

- 2 year fixed rate at 3.69% (down from 3.99%). ERC 3%/2%
- Rental yield based on notional rate of 5.25%

- New 3 year fixed rate product at 3.89%. ERC 3%/2%/1%
- Rental yield based on notional rate of 5.25%

- 5 year fixed rate at 4.39%. ERC 5%/4%/3%/2%/1%
- Rental yield based on pay rate of 4.39%

- Variable rate at LIBOR +3.41%. ERC 3%/2%
- Rental yield based on notional rate of 5.25%

Business Development Director, Paul Brett, said:

“We have reduced rates on products and also introduced a new 3 and 5 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.”