Foundation Home Loans increases LTVs and cuts rates on BTL range

Jessica Bird

June 11, 2020

Jeff Knight Foundation Home Loans

Intermediary-only specialist lender Foundation Home Loans has made a number of changes to its buy-to-let (BTL) range, including increases to loan-to-value (LTV) bands and rate cuts.

2-year rates now start at 2.94% and 5-year deals from 3.54%, and Foundation has increased its LTVs to 75%, including houses of multiple occupancy (HMOs) and multi-unit blocks (MUBs).

In addition, Foundation Home Loans has launched a new 5-year fixed-fee product for F1 borrowers, to benefit those looking for larger loans.

The product is offered at 3.84% up to 65% LTV, or 4.29% up to 75% LTV, and comes with a fixed fee of £1,995.

The lender’s variable rate products have no early repayment charges (ERCs).

Foundation Home Loans has also introduced a number of criteria changes across the BTL range, including the re-introduction of a 125% interest cover ratio (ICR) for limited company borrowers and basic-rate taxpayers.

It has also returned to offering products for first-time landlords.

Fixed-rate end terms have been changed to 31 October.

Jeff Knight, director of marketing at Foundation Home Loans, said: “Since returning to new lending last month, we’ve seen a growing interest from advisers and landlords as they seek to both refinance and add to their portfolios.

“As the market continues to change, we have taken the decision to enhance our product offering, broaden our criteria and introduce new products which we believe provide a greater degree of flexibility for landlords whose circumstances may well change over the next 12 months.

“Our variable rate products have no ERCs attached and mean that landlords will be able to remortgage with no additional costs in the future.

“Also, our new fixed-fee product cuts down on the overall and upfront costs for landlords and may be particularly applicable for those landlords seeking larger loans.

“We’re also very pleased to be able to introduce our 125% ICR level for limited company borrowers, plus those who are basic-rate taxpayers.

“Overall, these product and criteria changes represent the next step forward for Foundation in the buy-to-let space, and we would urge advisers to speak to their regional sales contact.”

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