The 5-year fixed rate product also uses the pay rate of 4.39% to assess rental yield rather than the notional rate.
New product details are:-
• 2 year fixed rate at 3.69% (down from 3.99%). ERC 3%/2%
Rental yield based on notional rate of 5.25%
• New 3 year fixed rate product at 3.89%. ERC 3%/2%/1%
Rental yield based on notional rate of 5.25%
• 5 year fixed rate at 4.39%. ERC 5%/4%/3%/2%/1%
• Rental yield based on pay rate of 4.39%
• Variable rate at LIBOR +3.41%. ERC 3%/2%
• Rental yield based on notional rate of 5.25%
Paul Brett, business development manager at Foundation, said the three and 5-year fixed rate products fill a significant gap in the product range.
He said: “Our introducers have identified these new products as an important addition we needed to make. By allowing the rental yield calculation of 4.39% rather than the notional rate, we believe this will allow more customers to benefit from our compelling lending proposition.
“I believe that introducers will be delighted by these changes, which will appeal to more landlords looking to lock into a longer term product.”
