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

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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.

Based on today's mortgage rates & criteria (25/07/2025), the examples shown may not be accurate in time.

Lowest 85% LTV BTL Mortgage Rates

Rate	Fees	Features
6.49% 5 Years Fixed 5 Years Fixed at 6.49% Cyborg Finance pmsbtl-4759778	£199.00 Application Fee.	No Arrangement Fee BTL Yes SPV Company No HMO No Holiday Let No
6.49% 5 Years Fixed 5 Years Fixed at 6.49% Cyborg Finance pmsbtl-4759778	£199.00 Application Fee.	No Arrangement Fee BTL Yes SPV Company Yes HMO No Holiday Let No
5.73% 3 Year Fixed TBC TBC Fixed at 5.73% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO No Holiday Let No
6.04% 6 Year Fixed TBC TBC Fixed at 6.04% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO No Holiday Let No
6.12% 3 Year Fixed TBC TBC Fixed at 6.12% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO Yes Holiday Let No

The mortgage products shown are for illustrative purposes only and were generated 35 minutes ago. Always consult an independent financial advisor before proceeding with any mortgage. The figures are based on a £117648 property value, a £100000 loan amount and £17648 deposit. A Initial Fixed Rate on a interestOnly loan, and a 25-year mortgage term.

Rate	Fees	Features
6.49% 5 Years Fixed 5 Years Fixed at 6.49% Cyborg Finance pmsbtl-4759778	£199.00 Application Fee.	No Arrangement Fee BTL Yes SPV Company No HMO No Holiday Let No
6.49% 5 Years Fixed 5 Years Fixed at 6.49% Cyborg Finance pmsbtl-4759778	£199.00 Application Fee.	No Arrangement Fee BTL Yes SPV Company Yes HMO No Holiday Let No
5.73% 3 Year Fixed TBC TBC Fixed at 5.73% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO No Holiday Let No
6.04% 6 Year Fixed TBC TBC Fixed at 6.04% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO No Holiday Let No
6.12% 3 Year Fixed TBC TBC Fixed at 6.12% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO Yes Holiday Let No

The mortgage products shown are for illustrative purposes only and were generated 36 seconds ago. Always consult an independent financial advisor before proceeding with any mortgage. The figures are based on a £117648 property value, a £100000 loan amount and £17648 deposit. A Initial Fixed Rate on a interestOnly loan, and a 25-year mortgage term.

Rate	Fees	Features
6.49% 5 Years Fixed 5 Years Fixed at 6.49% Cyborg Finance pmsbtl-4759778	£199.00 Application Fee.	No Arrangement Fee BTL Yes SPV Company Yes HMO No Holiday Let No
5.73% 3 Year Fixed TBC TBC Fixed at 5.73% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO No Holiday Let No
6.04% 6 Year Fixed TBC TBC Fixed at 6.04% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO No Holiday Let No
6.12% 3 Year Fixed TBC TBC Fixed at 6.12% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO Yes Holiday Let No
6.36% 6 Year Fixed TBC TBC Fixed at 6.36% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO Yes Holiday Let No

The mortgage products shown are for illustrative purposes only and were generated 1 minute ago. Always consult an independent financial advisor before proceeding with any mortgage. The figures are based on a £117648 property value, a £100000 loan amount and £17648 deposit. A Initial Fixed Rate on a interestOnly loan, and a 25-year mortgage term.

Rate	Fees	Features
6.49% 5 Years Fixed 5 Years Fixed at 6.49% Cyborg Finance pmsbtl-4759778	£199.00 Application Fee.	No Arrangement Fee BTL Yes SPV Company Yes HMO No Holiday Let No
5.73% 3 Year Fixed TBC TBC Fixed at 5.73% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO No Holiday Let No
6.04% 6 Year Fixed TBC TBC Fixed at 6.04% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO No Holiday Let No
6.12% 3 Year Fixed TBC TBC Fixed at 6.12% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO Yes Holiday Let No
6.36% 6 Year Fixed TBC TBC Fixed at 6.36% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO Yes Holiday Let No

The mortgage products shown are for illustrative purposes only and were generated 35 seconds ago. Always consult an independent financial advisor before proceeding with any mortgage. The figures are based on a £117648 property value, a £100000 loan amount and £17648 deposit. A Initial Fixed Rate on a interestOnly loan, and a 25-year mortgage term.

Rate	Fees	Features
6.12% 3 Year Fixed TBC TBC Fixed at 6.12% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO Yes Holiday Let No
6.36% 6 Year Fixed TBC TBC Fixed at 6.36% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO Yes Holiday Let No

Rate	Fees	Features
6.12% 3 Year Fixed TBC TBC Fixed at 6.12% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO Yes Holiday Let No
6.36% 6 Year Fixed TBC TBC Fixed at 6.36% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO Yes Holiday Let No

Rate	Fees	Features
6.12% 3 Year Fixed TBC TBC Fixed at 6.12% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO Yes Holiday Let No
6.36% 6 Year Fixed TBC TBC Fixed at 6.36% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO Yes Holiday Let No

The mortgage products shown are for illustrative purposes only and were generated 34 seconds ago. Always consult an independent financial advisor before proceeding with any mortgage. The figures are based on a £117648 property value, a £100000 loan amount and £17648 deposit. A Initial Fixed Rate on a interestOnly loan, and a 25-year mortgage term.

Rate	Fees	Features
6.12% 3 Year Fixed TBC TBC Fixed at 6.12% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO Yes Holiday Let No
6.36% 6 Year Fixed TBC TBC Fixed at 6.36% Cyborg Finance pmsbtl-4759778	£195.00 Assessment Fee. 2% Arrangement Fee.	BTL Yes SPV Company Yes HMO Yes Holiday Let No

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.

and / or

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.

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

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