New 85% LTV BTL Mortgage: Foundation Boosts Competition for Landlords

Find the best 85% LTV Buy-to-Let deals

For over a year, Vida Bank has stood alone as the sole provider of 85% loan-to-value (LTV) mortgages for Buy-to-Let Landlords.

This week, however, Foundation has joined the fray, introducing much-needed competition that could benefit landlords seeking higher leverage. This entry is a welcome addition to the market, expanding options for property investors.

Both lenders now offer products tailored to individuals and limited companies, with minimum loan sizes of £50,000 for Vida and £100,000 for Foundation. The maximum loan size caps at £500,000 for each.

When comparing the two, Vida provides a lower mortgage rate but includes a percentage-based loan fee. In contrast, Foundation boasts zero application fees, though it comes with a higher interest rate. At first glance, this might make Foundation more appealing for larger loans, where the absence of fees could offset the elevated rate. However, landlords should note a key caveat: Foundation's maximum borrowing is constrained by stress testing at a higher rate, which may limit the overall loan amount available.

It's also important to highlight that Foundation's new entry into this market is somewhat limited. Unlike Vida, which extends 85% LTV options to Houses in Multiple Occupation (HMOs) and Multi-Unit Freehold Blocks (MUFBs), Foundation does not currently cover these property types.

Lowest 85% LTV BTL Mortgage Rates

Wondering if this could supercharge your portfolio? Let's break it down.

• Vida Pros: Lower rates, covers HMOs/MUFBs, smaller minimum loan.
• Vida Cons: Percentage-based fees.
• Foundation Pros: No fees, potentially better for large loans.
• Foundation Cons: Higher rates, stress testing limits, no HMOs/MUFBs.

Overall, this competition is a boon for the BTL sector, as more buy-to-let mortgages at 85% LTV offer more flexibility and potentially better deals depending on your specific needs. If you're a landlord considering remortgaging or making a new purchase, please get in touch.

85% LTV Mortgage Criteria

• Available for Houses in Multiple Occupation (HMOs)
• Available for Multi-Unit Blocks.
• Available for Standard Buy-to-Lets
• Available for Personal name OR Limited Company Buy to Let.
• Available in England, Wales, Scotland and Northern Ireland.
• No Minimum Income.
• Interest Only or Repayment.