The new products have been launched alongside a series of rate cuts including:
Standard – two-year F2 (for borrowers with some credit blips) 65% LTV reduced to 3.19% from 3.24%, and 75% LTV to 3.34% from 3.39%; five-year F2 fix 65% LTV at 3.39% from 3.44% and 75% LTV at 3.54% from 3.64%. All with a 2% fee.
HMO – five-year F2 65% LTV reduced to 3.49% from 3.59% and 75% LTV to 3.64% from 3.74%. Both with a 2% fee.
New products
According to the lender, the limited company product is priced at 3.24%, 10 basis points below Foundation’s core limited company range, with a reduced 1.5% fee and is available up to 75% LTV with a maximum loan amount of £1 million, and ICR calculated at 125% of pay rate.
The new short-term let products are a two-year 65% LTV discount of 1.6% giving a current pay rate of 3.49%, and a 75% LTV 1.2% discount giving a current pay rate of 3.89%.
Foundation has also cut rates on its current short-term let products, reducing its five-year fix at 65% LTV to 3.99% from 4.19% and the 75% LTV to 4.29% from 4.79%.
George Gee, Commercial Director at Foundation Home Loans, said: “There’s no doubting that the Budget announcement on stamp duty has eased a number of worries about purchase completion, but it has also resulted in an increased activity impetus, particularly from landlords.
"Landlords continue to seek out properties that can deliver strong yield – hence the focus on HMO and short-term lets – and as a lender active in these areas we want to ensure advisers and their clients have access to a highly competitive range, right across the buy-to-let product space. Along with our flexible criteria and our personal service, we believe this current range will be of huge benefit to many advisers and their landlord clients.”
