"Our focus continues to be on helping intermediaries whelp their landlord clients secure the mortgages they need"
The lender has introduced a new ICR for basic-rate tax payers which reduces from 145% of rental income to 125%; affordability will still be calculated at pay rate for Foundation’s five-year fixed-rate products but at the lower ICR level of 125%, while the rental calculation for all other rates is 125% at 5.5%.
The lender’s ICR of 125% for limited company borrowers remains unchanged.
Foundation has also increased maximum loan sizes across its entire product range for both 65% and 75% LTV.
Maximum loans across its F1 and F2 ranges have increased to £2 million for 65% LTV large loans, to £1.5 million from £1m for other 65% LTV products, and to £1m from £750,000 for all 75% LTV products.
Jeff Knight, director of marketing at Foundation Home Loans, said: “As we have moved into 2020, our focus continues to be on helping intermediaries whelp their landlord clients secure the mortgages they need, and helping them have access to as wide a range of properties as possible.
"We have done this today via two methods, namely changing our ICR calculations and by upping our maximum loan sizes across all our range for those seeking both 65% and 75% LTV options. This is important as it keeps the rental income requirement down and perhaps opens up properties that a landlord borrower would not be able to ordinarily consider.
"Foundation’s focus is on marrying flexibility and accessibility with responsible lending and, given our increased appetite for buy-to-let business this year, we believe these measures help advisers and their landlord clients to get where they want to be.”
