BTL

Foundation Home Loans, Landbay and Leeds Building Society update BTL offerings



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Specialist lenders Foundation Home Loans, Landbay and Leeds Building Society have bolstered their BTL product ranges.

Foundation Home Loans

Foundation Home Loans has launched two limited edition BTL products.

The lender is offering a 2.99%, two-year fixed-rate product available for standard residential and MUFB properties, as well as an HMO two-year fixed-rate product, available at 3.34%.

Both products are available only to limited company borrowers at up to 75% LTV and include a 1% fee.

They are priced at 10 basis points below Foundation’s core range, with the product fee halved, and designed specifically for clients who just miss out on mainstream credit or criteria.

The loans range from £200,000 to £1m and are provided at Foundation’s ICR of 125% at 5.5%.

The lender welcomes portfolio landlords and has no limit to the background portfolio size of each borrower, subject to a maximum of £3m with Foundation.

George Gee, commercial director at Foundation Home Loans, said: “Over the past five years, a consistent two in 10 landlords have utilised limited companies to purchase further properties in their portfolio, and we anticipate this cohort will be highly active in 2021. 

“It’s therefore important that intermediaries can access price-competitive limited company products and specialist criteria, so we are cutting rates and fees on these two-year fixed-rate products to provide greater choice, specifically for refinancing or purchasing within a limited company structure.”

Landbay

Landbay has launched a new range of BTL products for trading limited companies purchasing or remortgaging standard properties, HMOs and MUFBs.

The offering, which provides loans between £100,000 and £1m at up to 75% LTV, includes:

  • a standard five-year fixed-rate product, starting at 3.39%
  • a small HMO (up to six beds) two-year fixed-rate product starting at 3.65%
  • a small MUFB (up to six units) two-year fixed-rate offering, starting at 3.65%
  • a small MUFB (up to six units) five-year fixed rate product, starting at 3.99%.

In addition, Landbay has increased LTVs on large HMOs and MUFBs (up to 12 beds or units) to 75%.

There is also now no limit on the number of floors in a property that Landbay will lend on.

Paul Brett, managing director for intermediaries at Landbay, commented: “As one of the few lenders catering for trading limited companies, brokers now have more choice when advising company directors who do not specialise in property. 

“If small companies have surplus profits, buying property to let can be a tax efficient investment.

“Our appetite for lending has been boosted by our new £1bn funding source over five years from our new friends and partners, Allica Bank, which we announced last week. 

“We are having a tremendous year across the business and I believe there are even more exciting times ahead for us.”

Leeds Building Society

Leeds Building Society has reduced its ICR from 145% to 125% on BTL mortgages where the applicant is a basic rate taxpayer.

“It means our BTL mortgages are now tailored to each customer’s tax situation, more accessible to those who are basic rate taxpayers, and makes BTL more affordable for these landlords buying, remortgaging or borrowing additional funds,” said Martese Carton, head of intermediary distribution at Leeds Building Society.

"We continue to take a flexible and common-sense approach to our product offering, reaffirming our commitment to the intermediary market.”

The ICR for higher rate taxpayers remains at 145%. 

For additional rate taxpayers, ICR is 150%, while for all holiday let applicants, it will stay at 145%.

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