Foundation Home Loans offering buy-to-let fix with rental yield based on pay rate

by Aaron Strutt

Jun 18 2015

Foundation Home Loans (FHL) has launched a five-year fix buy-to-let mortgage which uses the pay rate for the rental calculation rather than a higher notional rate. 

For many buy-to-let homes in London, the rental income generated by the property is not as much as many of the lenders expect. In order to secure a sufficient mortgage, borrowers often require a more lenient rental calculation. 

FHL's business development director Paul Brett says: “By allowing the rental yield calculation of 4.39 per cent rather than the notional rate, we believe this will allow more customers to benefit from our compelling lending proposition.”

Foundation’s buy-to-let criteria includes:

• No minimum qualfication income
• Maximum age of 85 
• Up to 10 properties with FHL – unlimited with other lenders
• Refinanicing of a bridging loan

New buy-to-let lender

The lender opened its doors earlier this year with a product range aimed at amateur landlords with prime and light adverse mortgages.

Foundation does not require landlords to have a minimum income and doesn’t have a cap on the amount of properties a landlord can have with other lenders.

For help to secure a buy-to-let mortgage, call Trinity on 020 7016 0795