Foundation Home Loans (FHL) has simplified its buy to let products and criteria and has introduced a new limited company proposition, which will be offered alongside their core range at no additional interest rate premium.
In a statement Foundation Home Loans says that regardless of whether they are buying through a limited company or in their own name, landlords should not be expected to pay a higher interest rate than for a standard buy to let purchase or remortgage.
The lender’s new limited company proposition will also be available to first-time landlords.
As part of the overhaul, FHL has cut its minimum valuation to £75,000 and has introduced fixed end dates for fixed rate mortgages.
An arrangement fee of £1,999 for all loans under £250,000 and 2% over £250,000, has also been introduced by the lender.
Simon Bayley, commercial director at Foundation Home Loans, said:
"There is going to be plenty of interest in 2016 from landlords considering the best way to reduce their tax exposure using a limited company approach.
"After our initial pilot, we didn't feel that pricing such a product at a premium was fair. Adding first-time landlords to our limited company range shows we believe landlords should be able to chose the best set-up that suits their circumstances and not be restricted to by the lenders.
"Apart from an additional fee due to the extra complexity of underwriting limited company SPV's, we want brokers and their landlord clients to feel that there is a lender offering choice without charging a premium."
"We have reduced our minimum property valuation, allowing our introducers to target landlords looking at property away from the South East, where the income to investment ratio becomes more viable.
"Also, fixed rate terms in buy to let have tended to be less than they claim to be.
By moving to fixed end dates on fixed rate products, clients who DIP after 16th December for example, will have their fix until 30 April.
With all these enhancements, we have also helped to simplify the product matrix, making it easier to navigate and choose the right solutions for your clients.
"These changes put down a marker for 2016 and show just how receptive FHL will continue to be to the needs of landlords and their advisers."
Foundation Home Loans is a semi-exclusive, intermediary only lender, meaning rates can only be accessed via a select panel of brokers, including Mortgages for Business.
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17th December 2015