Brokers appreciating FHL’s Ltd Company product pricing is leading the market

11 January 2016

Foundation Home Loans (FHL) has been delighted by the response from introducers to its Limited Company BTL product and since launching with pricing for the product at the same rate as for its core range in December, enquiry levels have grown substantially.

FHL, part of Paratus AMC, which is approaching the first anniversary of the launch of its BTL proposition in February, has become well known in the intermediary market for championing niche areas, such as first time landlords and basing its underwriting decisions on rental income only.

Simon Bayley, Commercial Director at FHL commented, “It is great to see another lender following our lead and cutting the cost of their Limited Company BTL product and I am sure that where FHL leads, others will follow. There will be increasing interest in Limited Company BTL products in 2016 and we don’t see why brokers and their landlord clients should be paying an interest rate premium, just because of the current limited availability of such products. Our aim is always to provide maximum value to clients and we shall continue to offer innovative products with pricing that is fair and consistent.”

Hans Geberbauer, Chief Executive Officer added, “We looked at the data and felt we couldn’t justify a price premium for what is essentially the same credit risk. With FHL, landlords can focus on choosing the structure that best suits their needs without being penalised on the interest rate.”

Doug Hall, Managing Director at 3mc, one of FHL’s major partners, commented, “This is a welcome move by FHL and great news for the market. Limited Company BTL products are going to become very important this year and will definitely become more mainstream. FHL is to be applauded for its stance which is already being welcomed by landlords and their advisers.”