Foundation Home Loans, the intermediary-only specialist lender, has today announced a series of rate reductions and product additions across its buy to let range, designed to support brokers with landlord borrowers seeking greater flexibility.
Following the Bank of England’s decision to hold Bank Base Rate (BBR) at 4% last week, and ahead of the forthcoming Autumn Budget, Foundation Home Loans has introduced new two-year discount products across popular ranges and reduced rates on its existing ERC3 and discount options.
ERC3 is a five-year fixed rate product which has early repayment charges (ERCs) for only three of the five years, giving the landlord borrower the stability of a five-year fixed rate but with the flexibility to change before maturity if they need to do so.
The lender said the refreshed range is aimed at offering landlords’ greater control and flexibility in the current market, with its new two-year discounts featuring no ERCs and linked to BBR. Together, it said the changes offered borrowers more freedom and options if market conditions or their circumstances change.
The updates include:
F1 – for clients with an almost clean credit history - five-year fixed-rate ERC3 product reduced by 0.10%, now with a rate of 5.54%. The product comes with a 1% fee and is available up to 75% LTV.
F1 two-year discount product reduced by 0.05%, now with a rate of 5.94%. It comes with a 1.5% fee and is available up to 75% LTV with no ERCs.
New F2 - for clients with some historical blips on their credit rating - two-year discount product with a rate of 5.99%. It also has a 1.5% fee and is available up to 75% LTV with no ERCs.
New F2 two-year discount products with rates of 6.09% (for HMOs up to six occupants) and 6.19% (for Multi-Unit Freehold Blocks). These both have a 1.5% fee and are available up to 75% LTV with no ERCs.
Tom Jacob, Director of Product at Foundation Home Loans, said:
“Landlords continue to balance opportunity with requirements for ongoing flexibility when it comes to their mortgage finance requirements. That need for both certainty and flexibility remains one of the key priorities we hear from our broker partners in terms of what they can offer landlord borrowers.
“That being the case these price cuts and the launch of new products are designed to deliver just that. Our two-year discount products with no ERCs and the ERC3 product, which offers a five-year fixed rate but only a three-year tie-in, deliver the kind of adaptable finance structure that landlords need right now.
“We believe these changes position Foundation Home Loans strongly in an evolving buy to let market and reinforce our commitment to providing products that help landlords plan with confidence while keeping their future options open.”
