Foundation Home Loans has launched a five-year limited edition fixed-rate buy-to-let product.
The broker-only lender says the offer is open to individual landlords and limited companies at a 6.69% rate at up to 75% loan to value, with a £2,995 flat fee. The deal has a £1.5m maximum loan amount.
The product is in the firm’s F1 tier range, which means it is suitable for borrowers with an almost clean credit history.
The move follows inflation this week falling to a 16-month low of 7.9% in the year to June, according to the Office for National Statistics, from 8.7% in the year to May.
Financial markets are betting that this ease in the rise of the cost of living will reduce pressure on the Bank of England to aggressively lift the base rate, currently at 5%.
Investors forecast a peak base rate of 5.75%, compared to predictions earlier in the week of the rate hitting 6.5% next March.
Foundation Home Loans director of product and marketing Tom Jacob says: “Even prior to the publication of the latest inflation figures, we were seeing an easing of swap rates off their most recent highs, and as a result of this shift, we are able to launch this limited edition five-year fix for BTL borrowers at a keener rate.
“Five-year fixes remain popular in terms of both meeting affordability measures, ensuring borrowers can secure the right loan amount and in terms of providing monthly mortgage payment certainty.”
