Foundation Home Loans cuts owner-occupier special rates and reintroduces 80% LTV products

Foundation Home Loans, the intermediary-only specialist lender, has today announced further price reductions across its owner-occupier special products and the introduction of new owner-occupier five-year fixed-rates for its F1 and F2 tiers, and Green F1 mortgages.

Special product rates for owner-occupiers have been reduced by up to 10 basis points (bps) while fees have been reduced by £500 to £995.

The lender has also launched two new Special fee-assisted F1 – for clients just missing out on the mainstream – and F2 – for clients with recent credit blips within the last 24 months – five-year fixed products, available up to 65% LTV, with a reduced fee of £795, one standard valuation and no application fee. Rates start from 6.59%.

In its core owner-occupier range, Foundation is also introducing new five-year fixed-rate products for F1 and F2 borrowers, as well as new two- and five-year fixed Green F1 ABC+ products for properties with an Energy Performance Certificate (EPC) rating of C and above.

It is also reintroducing 80% LTV products for owner-occupiers, again for both F1 and Green F1 borrowers, with rates starting at 7.19% fixed for two years.

For buy-to-let products, Foundation is also reducing selected Special product rates and fees; two-year fixed-rate specials have seen their product fees reduced from 2% to 1%, to help with upfront borrower costs, while the lender’s F1 five-year fixed, 65% and 75% LTV Specials have seen cuts up to 10bps, with rates starting at 5.94%.

Foundation’s current service levels continue to average 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: “Much of these changes focus on our special and core owner-occupier products. We believe this provides a greater array of choice, in particular for those existing homeowner borrowers seeking to remortgage and by dropping the fees on those products, it should also help them in terms of keeping those initial costs down.

“We have been keen to build back up with a broader owner-occupied offering, which is why we’re now offering new 80% LTV products for both F1 and Green F1 borrowers, plus we have the new five-year fixes within our core range. It’s recognition of our continued focus on choice, but also our commitment to the Green agenda and ensuring we have a very strong proposition for borrowers with properties who meet the EPC criteria level.

“For buy-to-let, where possible, we’ve focused on bringing five-year fixed-rate pricing down, but we’ve also been able to cut fees on our two-year fixed-rate specials, in order to help landlord borrowers with those upfront costs.

“Overall, we believe these changes, coupled with the rest of our core range, provides both advisers and their specialist owner-occupier and buy-to-let clients with a greater array of choice to fit many different needs and circumstances, and we’re looking forward to working with advisers to help them find the solutions they need.”