Rates now start from 6.49%
Specialist lender Foundation Home Loans has announced rate reductions of up to 20 basis points (bps) on selected products within its core buy-to-let range.
The rate adjustments primarily affect the F1 and F2 two-year fixed rate range, with reductions of 20bps. The F1 two-year fixed rate now has a headline rate of 6.54% at 65% loan-to-value (LTV) and 6.59% at 75% LTV. The F2 two-year fixed rate has a headline rate of 6.69% at 65% LTV and 6.79% at 75% LTV. Both products carry a 1.50% fee.
The lender has also made a 20bps rate reduction on standard two-year house in multiple occupation (HMO) and short-term let fixed rate products. Standard two-year HMO fixed rates start from 6.79%, while two-year fixed rate short-term let products start from 6.94%.
Foundation has also decreased the rate on its F1 limited edition seven-year fix by 15bps, now featuring a headline rate of 6.54% up to 75% LTV and a 1% fee. Furthermore, the rate on its F1 limited edition two-year fixed rate product has been lowered by 10bps, now with a headline rate of 6.49% up to 75% LTV and a fixed fee of £1,495.
“There’s no getting away from the fact that much of 2023 has proved to be a challenge for many landlords,” remarked Tom Jacob (pictured), director of product and marketing at Foundation Home Loans. “However, it’s also fair to say that the back end of the year has shown there is light at the end of tunnel with positive swap rate movement and increased competition across the sector helping to alleviate some affordability concerns.
“Our latest raft of rate reductions should further encourage landlords to evaluate their options over the closing weeks of the year and let me reassure them – and our intermediary partners – that there are more positive actions in the pipeline as we look to enter 2024 with a bang.”
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