Foundation slashes buy-to-let rates

Specialist lender slashes BTL rates

Foundation slashes buy-to-let rates

Intermediary-only specialist lender Foundation Home Loans has announced updates to core and special buy-to-let products under its Buy to Let by Foundation brand.

Within its core range, the lender has reduced rates on its F1 five-year fixed rates, aimed at both portfolio and non-portfolio landlords with near-clean credit histories, by up to 50 basis points (bps), with new rates starting at 5.74%.

Rates for the F2 range, targeting those with some credit issues, have also been lowered. The standard five-year fix is now down by 45bps to 5.94%, and the standard HMO five-year fix is reduced by 20bps to 6.29%.

In the specials range, Foundation has reintroduced its portfolio landlord only five-year fixed rate product at 75% loan-to-value (LTV), starting at 4.99%, and carrying a 6% fee.

Rates on the F1 standard special two-year fixed rates have been cut by 15bps, starting at 5.34%. The F2 HMO special two- and five-year fixed rates have also seen reductions of 15bps, now beginning at 5.39%.

The lender’s residential arm, Residential by Foundation, has reduced rates by 10bps on its F1 and F2 special fee-assisted two- and five-year fixes, with new rates starting at 6.44%. This follows the recent introduction of joint borrower sole proprietor products, which allow up to four borrowers on the mortgage, with two named on the property deed.

“These BTL changes, plus the reductions to our residential special fee-assisted products, provide advisers with options for clients who are just outside the mainstream or have some historical credit blips, with access to a range of highly-competitive mortgages that match their needs,” said Tom Jacob (pictured), director of product and marketing at Foundation Home Loans.

“The specialist mortgage market is increasingly important in today’s economy, and the lower rates we are now offering should help borrowers meet their affordability criteria and secure the level of loans they require.

“Our three Foundation brands have a growing number and breadth of product options and, as a lender, we have the expertise in this area to be able to help our intermediary partners secure the positive outcomes required for their clients.”

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