New products and rate cuts widen options for BTL and resi borrowers

Lenders Paragon, Foundation, Zephyr, Pepper, and Precise unveil new offerings

New products and rate cuts widen options for BTL and resi borrowers

Specialist mortgage lenders have announced a wave of new product launches and rate reductions aimed at supporting both buy-to-let and residential borrowers.

Foundation Home Loans rolled out a series of product enhancements across its complex BTL range, including rate cuts and simplified fee structures. Property Plus products, which support properties adjacent to commercial premises, now start from 6.59% at 75% LTV following a 15 basis point reduction.

A new five-year fixed-rate option has been added at 6.49% with a 2.5% fee. HMO Plus products, for HMOs with up to six occupants, now start from 6.69% at 75% LTV, also following a 15 basis point cut. Short Term Lets Plus products, which support short-term rental properties using AST-based affordability, were reduced by the same margin and now start from 6.74% at 75% LTV.

For mixed-use properties such as flats above shops or buildings with commercial elements, Foundation added two- and five-year fixes at 60% LTV, starting at 6.84%. The existing two-year fix at 70% LTV has been cut to 7.29%, and product fees across all variants, including for expat applications, have been reduced to 2.5%.

In addition to these complex product updates, Foundation reduced rates on several of its BTL Special products. The five-year fixed Special Portfolio Landlord product with a 6% fee is now priced at 4.69%. The two-year fixed Special for Limited Company HMOs with a 3% fee was cut to 4.54%. The five-year fixed Special for Limited Company MUFBs with a 3% fee was reduced to 5.39%, and the five-year fixed Special for Short Term Let Limited Company products with a 4% fee dropped by 25 basis points to 5.49%.

Paragon Bank also introduced limited edition two-year fixed rate BTL products, with rates starting at 3.45% for properties with an EPC rating of ‘A’ to ‘C’. These products are available up to 70% loan-to-value (LTV) for single self-contained (SSC) properties, with no application fee, £500 cashback and free mortgage valuations.

Equivalent products for houses in multiple occupation (HMOs) and multi-unit blocks (MUBs) are priced from 3.80%. Interest coverage ratios (ICRs) are stressed at 5.5% for SSCs and 5.8% for HMOs and MUBs.

Zephyr Homeloans also announced rate reductions across its BTL range. Two-year fixed rates were cut by at least 10 basis points (bps), and five-year rates by at least 15bps. Two-year fixed standard mortgages, new build, and flats above commercial properties are now available at 2.69% up to 65% LTV with a 7% fee.

HMO and MUFB products are priced at 2.84%. Five-year fixed standard and new build mortgages are now 4.49%, while HMOs and MUFBs are at 4.59%, all with a 7% fee and up to 65% LTV.

Meanwhile, Pepper Money launched a limited edition five-year fixed-rate product under its Pepper48 tier, priced 0.20% lower than its core range. Rates start at 5.14% at 75% LTV, with options for free legals, free valuation or no completion fee. Designed for borrowers who fall outside mainstream credit criteria, Pepper48 is available for purchase or remortgage.

Pepper said the move is aimed at offering greater value and long-term stability to customers in a market shaped by economic uncertainty. The lender reported a 67% year-on-year rise in completions and a 79% increase in demand for five-year fixes, which now account for 70% of its business. Additionally, 40% of new customers have no CCJs or defaults, up from 33% last year.

Precise Mortgages, part of OSB Group, announced rate reductions of up to 16bps on its two- and three-year fixed residential products. These options come with varying fee structures, including a £0 fee, £1,495 fee or 1% of the loan amount. Two-year fixed rates now start from 4.84%, three-year from 4.97%, and five-year from 4.77%.

The lender also reduced pricing on its popular Tier 2 two-year fixed product across all LTV bands, including 75%, 85% and 95%, providing further options for borrowers with adverse credit histories such as CCJs, defaults or mortgage arrears.

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