It also reduces fees on several BTL deals
Foundation Home Loans’ buy-to-let brand, Buy to Let by Foundation, has announced the launch of new short-term and holiday let products, alongside a reduction in fees on several existing buy-to-let options.
The specialist lender introduced two new products with fee-assisted rates: a two-year and a five-year fixed rate for short-term let properties. These products are available up to 75% loan-to-value (LTV) with starting rates of 6.79% and a 1.25% fee.
A new holiday let product has also been unveiled with a two-year fixed rate at 6.99% up to 70% LTV with a 2% fee.
Buy to Let by Foundation has reduced fees on multiple products. The fee for its F1 – aimed at portfolio and non-portfolio landlords with a nearly clean credit history – has dropped from 1.75% to 1% on its five-year fixed early repayment charge (ERC3) product, which carries charges only for the first three years.
The fees for its F2 Large Portfolio two- and five-year fixed-rate products have been lowered from 1.5% to 1.25%. These products also offer a free valuation and no application fee.
For larger loans, fees on the F2 five-year product for loans up to £5 million at 60% LTV and up to £3 million for 70% LTV have been cut from 2% to 1.5%.
The changes follow last month’s introduction of new pound-for-pound remortgage options by the lender, supporting individual and limited company borrowers up to 75% LTV, with loan sizes ranging from £50,000 to £1.5 million.
“We continue to review our product and criteria right across the buy-to-let range, and as a result of this, we’re able to launch these new, specific short-term and holiday let products, as well as cut fees across a number of other product options,” said Tom Jacob (pictured), director of product and marketing at Foundation Home Loans.
“Landlords continue to look at the ways and means by which they can diversify their portfolio, and both short-term and holiday let options are growing in popularity, not least because of the potential for greater rental yield levels on these types of properties.
“At the same time, we have been able to cut fees across a number of products, saving money upfront for landlords and over the term of the mortgage, given that large numbers of borrowers add the fees to the loan. Foundation will continue to closely monitor the market and our proposition to ensure we have a broad array of product options for those landlords who are looking to purchase or remortgage more specialist property types.”
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