Foundation Home Loans cuts standard and HMO pricing, and launches new short-term let products and a five-year limited company special

Foundation Home Loans, the intermediary-only specialist lender, has today cut rates across its standard and HMO ranges, and has launched a new Limited Edition limited company buy-to-let five-year fix and two new short-term let products.

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 lender welcomes portfolio landlords and has no limit to the background portfolio size for each borrower, subject to a maximum of £3m with Foundation.

Foundation has also made a series of rate cuts across a number of buy-to-let products 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.

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.”