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Foundation Home Loans returns to new lending with BTL and residential products

Jessica Bird

May 14, 2020

Jeff Knight Foundation Home Loans

Intermediary-only specialist lender Foundation Home Loans has created and launched buy-to-let (BTL) and residential products, and will return to new lending following the return of its valuation partners to the market. 

The products will be available to advisers and their clients from 18 May.

For BTL, all products are available to individuals and limited company borrowers, with a choice of both 2 and 5-year fixed rates in Foundation Home Loans’ F1, F2 and F3 ranges, as well as for both houses of multiple occupancy (HMOs) and large HMOs.

The product range will also include 2-year BTL discount products which have no early repayment charges (ERCs), available for both F1 and F2 borrowers.

These rates start at 2.94% for F1 borrowers at 60% loan-to-value ratio (LTV).

Foundation Home Loans’ BTL range allows loans up to 75% LTV, has a standardised interest coverage ratio (ICR) of 145% at either 5.5% or pay rate, comes with a 2% fee and reverts to Bank Base Rate plus 4.99% at the end of special terms.

The company has also launched a specialist residential range, offering both 2-year fixed and variable rate products.

2-year rates come with no ERCs, with products up to 75% LTV.

Jeff Knight (pictured), director of marketing at Foundation Home Loans, said: “Since lockdown was brought in, we have continued to lend by processing our existing pipeline, completing in the region of £37m of lending in April alone.

“However, once lockdown began, we took the strategic decision to only allow new applications once we knew it would be possible to instruct physical valuations again.

“Therefore, given announcements made this week, it is really pleasing to say that we can now offer our products to new applicants once again and will formally launch our full range on Monday.”


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