Foundation Home Loans, the intermediary-only specialist lender, has announced a number of changes to its buy-to-let product range including increases to LTV bands, rate cuts and the introduction of a new five-year ‘fixed fee’ product.
Two-year rates now start at 2.94% and five-year deals from 3.54% and from today Foundation has increased its LTVs to 75%, including HMOs and Multi Unit Blocks.
In addition, Foundation has also launched a new five-year ‘fixed fee’ product for F1 borrowers, which the lender believes will benefit borrowers looking for larger loans. The product is offered at 3.84% up to 65% LTV or 4.29% up to 75% LTV and comes with a fixed fee of £1,995.
The lender’s variable rate products have no early repayment charges (ERCs) which Foundation believes will provide greater flexibility for landlords who may wish to change products before the end of their special rate.
The lender has also introduced a number of criteria changes across the buy-to-let range including the re-introduction of a 125% ICR for limited company borrowers and basic-rate taxpayers, while it is also offering products for first-time landlords again. Fixed-rate end terms have also been changed to 31st October.
Jeff Knight, Director of Marketing at Foundation Home Loans, said: “Since returning to new lending last month, we’ve seen a growing interest from advisers and landlords as they seek to both refinance and add to their portfolios.
“As the market continues to change, we have taken the decision to enhance our product offering, broaden our criteria and introduce new products which we believe provide a greater degree of flexibility for landlords whose circumstances may well change over the next 12 months. Our variable rate products have no ERCs attached and mean that landlords will be able to remortgage with no additional costs in the future.
“Also, our new ‘fixed fee’ product cuts down on the overall and upfront costs for landlords and may be particularly applicable for those landlords seeking larger loans. We’re also very pleased to be able to introduce our 125% ICR level for limited company borrowers, plus those who are basic-rate taxpayers.
“Overall these product and criteria changes represent the next step forward for Foundation in the buy-to-let space, and we would urge advisers to speak to their regional sales contact.”