Specialist lender Foundation Home Loans yesterday announced the launch of its new ‘Fix to Flex’ five year, buy-to-let product, targeted at landlords who seek rate certainty along with flexibility allowing them to switch to another rate or lender within the term.

The five-year mortgage is offered at a fixed rate of 3.45 per cent for 65 per cent loan-to-value (LTV), and 3.74 per cent for 75 per cent LTV. However, early repayment charges are only applicable for the first three years of the mortgage, charged at 5 per cent, 4 per cent and 3 per cent respectively, with a product fee of 1.75 per cent.

Once the three-year period has come to a close, the borrower can then remortgage to another product without incurring any charges.

According to the lender, the new product will be suitable for individuals, limited companies, and first-time and portfolio landlords.

Commenting on the launch, Foundation Home Loans commercial director Andrew Ferguson said: “Having talked a lot to our intermediary partners, it became very clear that their landlord clients are looking for certainty in an uncertain economic environment. At the same time, no-one can be sure of what the mortgage market might look like in three, four or five years’ time, and many landlords would effectively like the best of both worlds.

“That means they want a highly-competitive long-term fixed rate, but they also want the opportunity to remortgage and refinance should their circumstances’, or the market, change.”

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