Foundation Home Loans cuts buy-to-let and owner occupier rates and introduces new discount products

Foundation Home Loans, the intermediary-only specialist lender, has today announced further price reductions across its owner-occupier and buy-to-let product ranges, as well as introducing new discounted products.

In the owner-occupier range, Foundation has made rate reductions of up to 150 basis points (bps) to its current core fixed-rate offering across its four residential tiers – F1 to F4.

Foundation has also improved the rate on its owner-occupier Green ABC+ product for properties with an Energy Performance Certificate (EPC) rating of C and above. This is now priced at 6.44% – previously 7.89%. Foundation said the change was to provide a further saving for homeowners who were seeking to finance or refinance qualifying properties.

The lender is also introducing two new owner-occupier F1 discount products – for clients just missing out on the mainstream – at both 65% and 75% LTV with rates starting at 6.44%, with a £1,495 fee.

For buy-to-let, Foundation has made rate reductions of up to 180 bps across its current five-year Green product range – again for properties with an EPC rating of C and above – covering both F1 and F2 tiers. F1 is for borrowers with an almost clean credit history and F2 for those with a more specialist property type and/or those with some historical blips on their credit rating.

Green buy-to-let five-year fixed rates are now available up to 75% LTV and will start at 6.44% with a 1.25% fee. There are Green fixed-rate options for standard properties as well as standard HMOs, Large HMOs/multi-unit blocks (MUBs), short-term lets and Expat borrowers.

Foundation is also introducing two new Green two-year discount products, in both the F1 and F2 tiers, with rates from 6.49%, offered with a free valuation, no application fee, and the benefit of no early repayment charges (ERCs) with the discount.

Finally, Foundation is also introducing new buy-to-let discount products across its F1, F2, HMO, MUBs and short-term lets, available up to 75% LTV for both individuals and limited company borrowers. Rates start at 6.59% for F1 borrowers.

Foundation’s current service levels include turnaround times of one day for DIP referral, application and underwriter review for all cases.

George Gee, Managing Director (Commercial) at Foundation Home Loans, said: “We are pleased to be able to cut rates across a large number of both our owner-occupier and buy-to-let products, and for a number these are significant 150 and 180 basis point drops.

“At the same time, we wanted to open up ERC-free discount product options to both residential and landlord borrowers, which we know in the current rate environment, will have an appeal particularly as they come with no early repayment charge allowing clients to more easily review their finance options over a shorter time period.

“We’re also keen to continue our strong level of support for Green mortgages, which means a significant cut in rate to our owner-occupier Green product, cuts to Green fixed-rate options for landlord borrowers, and the introduction of two new Green discount products which come with a free valuation, no application fee, and no ERCs.

“Our aim here is to recognise the shift in terms of increased landlord demand for properties already meeting an EPC level of C, plus at the same time with our Day 1 remortgage, it means landlords can carry out the work required on a property to get it to this level and refinance to Foundation as soon as that work is completed.

“Overall, we believe these rate cuts, and the introduction of a variety of new discount products, means advisers and their specialist borrower clients have a greater array of product choice to meet their needs.”