"Last week’s decision by the Bank of England to cut Bank Base Rate might well act as a catalyst for greater levels of activity in the private rental sector"
- Tom Jacob, director of product and marketing at Foundation Home Loans
'Buy to Let by Foundation’, the core buy-to-let brand of Foundation Home Loans, has announced new limited edition products, a new fee-assisted remortgage product and a number of price cuts.
The first new limited edition product is an F1 – for clients with an almost clean credit history – five-year fix, available up to 75% LTV, with a rate of 5.49%, a fixed £4,495 fee, and a minimum loan size of £200,000.
The lender is also launching a new limited edition F1 green product, for properties with an EPC of A-C. The five-year fix is also available up to 75% LTV, with a rate of 5.39%, a fixed £4,495 fee, and a minimum loan size of £200,000.
The third new product is an F1 fee-assisted remortgage-only five-year fix, available up to 65% LTV with a rate of 5.99%, and up to 75% LTV with a rate of 6.09%. This product comes with a £1,295 fixed fee, no valuation or application fee to pay and offers £500 cashback to the borrower.
Buy to Let by Foundation has also reduced its existing limited edition F1 five-year fixed rate by 15 basis points. It now comes with a rate of 5.44%, is available up to 75% LTV and has a 2.25% fee.
Further rate cuts have been made to the lender’s F2 – for clients financing a more specialist property type – short-term let two-year fixed rates, cut by up to 10 basis points. Rates start at 6.79% up to 75% LTV.
The F2 holiday let two and five-year fixes have also had rates reduced by up to 20 basis points, with rates starting at 6.54%, up to 70% LTV.
Tom Jacob, director of product and marketing at Foundation Home Loans, said: “We’re very pleased to be announcing these new limited edition products to our core range, plus we’ve been able to make some significant rate cuts to options for both short-term and holiday let landlord borrowers.
“The new limited edition products should appeal to both landlords looking for a strong longer-term rate in order to give them stability of payments over that period, plus those who are either remortgaging or purchasing properties that already have an EPC of C or above.
“We’re also pleased to be able to cut rates for both short-term and holiday let borrowers – a part of the market which has grown as landlords have sought the often greater levels of rental yield that can accompany these properties.
“Last week’s decision by the Bank of England to cut Bank Base Rate might well act as a catalyst for greater levels of activity in the private rental sector, and we know large numbers of borrowers are coming to the end of deals over the course of the next six months. Our third new product – the fee-assisted remortgage-only deal – again provides options for those coming up for renewal, plus it has the benefit of the reduced fees and the cashback to offset against this and other costs.
“Overall, we believe these new additions to the range, the price cuts, and our full buy-to-let product offering give advisers a growing number of options to ensure positive outcomes for their landlord clients.”
