Lowered Stress Test Rates for BTL Remortgages

Lowered Stress Test Rates for BTL Remortgages

14:55 PM, 22nd April 2024, About 4 weeks ago

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Foundation Homeloans has released improved criteria updates that can help if you are a Higher-Rate Taxpayer. Previously, you would have to look at a lower loan due to the 145% stress rate knocking you down, but with this offering, they may have tipped their corner of the remortgage market in your favour.

These new products appeal to higher-rate tax-paying landlords who are looking for 2-year fixed rates, who can now remortgage on more favourable terms without being subject to higher interest cover ratios, or the stress rates typically required of sub 5-year fixed rates.

Key Points:

Remortgages with no additional borrowing can now be considered on £4£ underwriting
Assessed at 125% Interest Cover regardless of applicant low/high tax payer status
The stress rate applied is the product Pay Rate – regardless of the length of the fixed period

New £4£ Limited Edition products: For individuals and limited companies
F1 6.59% fixed for 2 years
F2 6.74% fixed for 2 years
Products available up to 75% LTV
Minimum loan size: £50,000
Maximum loan size: £1.5m
Product fee 1.5%

This would be very good if you are a higher-rate taxpayer struggling to remortgage a portfolio with lower income but good capital growth.

If you require assistance with this or any other type of property finance please complete the form below and we will be happy to help.

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