It also reduces rates on select offerings
Foundation Home Loans’ specialist residential mortgage brand, Residential by Foundation, has introduced a series of new products and rate reductions across its various mortgage ranges.
New products include a five-year fixed rate limited edition mortgage for owner-occupiers who require extra flexibility or do not fully meet mainstream criteria. This mortgage is offered up to 80% loan-to-value (LTV), featuring a 5.99% interest rate, a maximum loan amount of £750,000, and a fixed application fee of £1,295.
In addition, the lender has decreased interest rates in its special fee-assisted F1 and F2 mortgage products. F1 mortgages, aimed at borrowers with minor credit issues in the last 24 months, have seen a rate reduction of 20 basis points (bps), now starting at 6.24%. Similarly, F2 products, for those with more recent credit challenges, now start at 6.34%, also reflecting a 20bps cut.
Residential by Foundation has also made rate reductions on selected F1 and F2 products within its core range. These include green mortgages, which cater to borrowers purchasing or remortgaging energy-efficient homes with an energy performance certificate (EPC) rating of ‘C’ or above. The rates for selected Core F1 and F2 products have been reduced by up to 15bps.
The lender continues to offer mortgages for a range of borrower situations through its F3 and F4 categories, catering to those with recent credit issues or minimal adverse credit history.
Recently, Foundation also introduced a new range of products, for landlords interested in purchasing or refinancing properties grouped under a single title, under the Solutions by Foundation brand.
“We continue to see a growth in demand from residential borrowers who are just beyond the mainstream in terms of their finances or their wants and needs, and it’s important we continue to review our product range to support advisers with these types of clients,” said Tom Jacob (pictured), director of product and marketing at Foundation Home Loans.
“We’re therefore very pleased to be able to announce a new F1 limited edition five-year fix, plus, we are also using this opportunity to cut rates on our selected F1 and F2 Special Edition and core residential products.
“Specialist residential borrowing is becoming an ever-growing part of our market, and at Residential by Foundation, we are continuing to evolve our proposition to ensure it takes this into account. We have products for a variety of borrowers, from professionals to key workers, the self-employed to those with a low credit score, from those with complex incomes to those borrowing into retirement, and we are here to support advisers as they seek the right product solutions for this wide array of borrowers.”
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