FOUNDATION HOME LOANS – RENTAL COVER STRESS TEST IMPROVED PLUS NEW BUY TO LET 2 YEAR FIXED SPECIALS RANGE.
As of today, Tuesday 16th May, Foundation Home Loans have improved their stress test calculation on shorter term buy to let rates – ICR is now stressed at the higher of Pay Rate + 2% or a flat 8%. You can read more about this here from 16th May.
Foundation are also, today, launching some new 2 year Fixed rate buy to let special products for purchase and remortgage.
New buy to let special rates include:
- F1 2 year Fixed rates starting at 5.39% with 1% fee and one free standard valuation
- F2 2 year Fixed rates starting at 5.49% with 1% fee
- F2 HMO 2 year Fixed rates starting at 5.54% with 1% fee
George Gee, Managing Director (Commercial) at Foundation Home Loans, said:
“While the Bank of England chose to increase Bank Base Rate (BBR) last week, overall, we have seen an improved outlook for what BBR might be over the next two- to five-year horizon, so we remain committed to offering advisors a range of shorter term options for their landlord clients. To further support those looking for shorter term products we have chosen to improve our ICR stress test for shorter term rates, simplifying it to either a pay rate plus 2% or a fixed 8%, whichever is the higher. Our stress test on 5-year products is unchanged – calculated at pay rate.”