Foundation Home Loans, the intermediary-only specialist lender, has today announced the launch of new remortgage products across both its buy-to-let and residential ranges.
In the buy-to-let space, advisers will be able to access a new set of fee-assisted two- and five-year fixed-rate remortgage products, available at both 65% and 75% LTV. Two-year fixed rates start at 3.34% and five-year fixed rates start at 3.54%.
The products are available to individuals and limited companies, for both portfolio and non-portfolio landlords and come with a number of incentives, including one free standard valuation per case, no application fee, and £250 cashback on completion.
Foundation is also launching a new ‘Early’ remortgage product for standard HMOs of up to six occupants, which allows the borrower to remortgage within six months of the initial purchase. It is a five-year fixed-rate product of 3.99% at 75% LTV, with a product fee of 2%.
The lender is also introducing a fee-assisted range of residential remortgage products for owner-occupiers. These two- and five-year fixed rates are available at 65%, 75% and 80% LTV. Rates start at 3.49% for two-year fixed rates and 3.99% for five-year.
This residential remortgage range also comes with the same incentives as the buy-to-let fee-assisted products, with one free standard valuation per case, no application fee and £250 cashback on completion.
Foundation has reiterated its borrower criteria, as the new range should appeal to those borrowers who may not meet mainstream lender criteria, those who may currently believe they are only eligible for a product transfer from their existing lender or have recently returned from furlough.
In addition, Foundation accept borrowers with complex income and employment situations, including the recently self-employed and those with mixed self-employed/PAYE income, as well as applicants across a range of credit levels.
The additional products are available to advisers at a time when existing products of £33.18bn value for December (CACI) can be expected to mature. Foundation believes the products and data highlight a good opportunity for advisers to generate remortgage business, which is unaffected by the stamp duty deadline.
George Gee, Commercial Director at Foundation Home Loans, said: “Recent mortgage data from CACI suggests there is likely to be significant number of product maturities in December – valued at £33.18bn – while 2021 could see the total maturity figure hitting £250bn. This is a large amount of potential remortgage business, as we anticipate purchase activity beginning to tail-off the closer we get to next March’s stamp duty deadline.
“In order to support advisers with clients wishing to remortgage, we’ve launched these new remortgage products across both our buy-to-let and residential ranges, with competitive pricing and a range of incentives for our fee-assisted loans.
“Our anticipation is that demand for remortgages will continue to grow and, with 2020 providing an added layer of complexity for many existing borrowers, we wanted to provide a competitive remortgage product range alongside our criteria, which takes into account what might have happened to a borrower’s individual finances.
“As always, our priority is to support advisers, we are working very closely with advisers to progress existing client cases as quickly as possible, and looking forward we believe these new remortgage products will appeal to both landlord and residential clients alike.”