Foundation Updates
Flexible Five-Year Fix: Foundation’s ERC3 Buy To Let Option Offers More Freedom for Landlords
We have cut the rate on our ERC3 five-year fixed-rate Buy to Let mortgage - now available at 5.69% - making it an even more attractive option for your landlord borrowers who want long-term stability without long-term ties.
Unlike traditional five-year fixes, ERC3 only includes early repayment charges for the first three years, giving landlord clients more flexibility to adapt their strategies later in the mortgage term.
That could be refinancing, reshaping portfolios, or taking advantage of changing market conditions - without a penalty for moving on after year three.
Key Benefits at a Glance
- New rate: 5.69% five-year fixed (was 5.94%).
- ERCs only for the first three years.
- Up to 75% LTV.
- Max loan size: £1.5m.
- 125% rental cover (basic-rate taxpayers)/145% (higher-rate).
- Available for purchases and remortgages.
- Covers specialist property types, including HMOs.
- Ideal for limited company structures.
What Makes ERC3 Stand Out for Brokers?
ERC3 represents a strong tool for matching landlord clients with flexible solutions. It balances pricing certainty with the option to rethink or restructure within a shorter time frame. This can be particularly beneficial for:
- Clients purchasing via limited companies or growing portfolios.
- Those considering property sales or restructuring within a few years.
- Borrowers who are hesitant about full five-year ERC tie-ins.
- Clients with dynamic investment strategies needing room to pivot.
Broker Insight
Tom Jacob, Director of Product and Proposition at Foundation, said:
“Many landlords want to fix their rate for peace of mind but don’t want to be locked in for five years. ERC3 gives them a way to do that — fixed pricing with a three-year commitment, not five. For brokers, that’s a real opportunity to support clients looking for both stability and flexibility.”
See the latest product guides here.
For intermediaries only
