"No-one can be sure of what the mortgage market might look like in three/four/five years’ time, and many landlords would effectively like the best of both worlds. "
The five-year mortgage is offered at a fixed rate of 3.45% at 65% LTV and 3.74% up to 75% LTV with a product fee of 1.75%.
Early repayment charges are only applicable for the first three years – charged at 5%, 4% and 3% respectively - and after this period borrowers can remortgage with no ERCs.
Cases can be underwritten as a five-year fixed-rate product, assessed on pay rate, and Foundation’s standard ICR and affordability criteria apply.
The product is part of the lender's F1 buy-to-let range, aimed at existing and new landlord clients with a predominantly clean credit history, and is suitable for individual, limited company, first-time and portfolio landlords.
Andrew Ferguson, commercial director at Foundation Home Loans, said: “Having talked a lot to our intermediary partners, it became very clear that their landlord clients are looking for certainty in an uncertain economic environment. At the same time, no-one can be sure of what the mortgage market might look like in three/four/five years’ time, and many landlords would effectively like the best of both worlds. That means they want a highly-competitive long-term fixed rate, but they also want the opportunity to remortgage and refinance should their circumstances’, or the market, change.
“With this ‘Fix to Flex’ product we can provide just that. Whether they’re an individual, purchasing or remortgaging through a limited company, a first-time or portfolio landlord, this product ensures that – after three years – advisers’ clients will not have to pay an ERC should they wish to seek an exit whilst ensuring they know exactly what they’re going to be paying every month during that period.
“Part of the reason why landlords’ – or indeed any borrower – often don’t like to fix for too many years is they fear being tied into deals, and having to pay significant charges, should they need to review their mortgage and change deals. This product provides a fully-workable solution for such concerns and we believe there is a clear demand for a mortgage which provides both certainty and flexibility.”
