Foundation Home Loans enhances buy-to-let range with rate cuts and new products

Foundation Home Loans has announced a series of rate reductions and product additions across its buy-to-let range.

Following the Bank of England’s decision to hold Bank Base Rate (BBR) at 4% last week, and ahead of the forthcoming Autumn Budget, Foundation has introduced new two-year discount products and reduced rates on its existing ERC3 and discount options. ERC3 is a five-year fixed rate product which has early repayment charges (ERCs) for only three of the five years.

In the lender's F1 range – for clients with an almost clean credit history - a five-year fixed-rate ERC3 product has reduced by 0.10%, now with a rate of 5.54%. The product comes with a 1% fee and is available up to 75% LTV.

An F1 two-year discount product has reduced to 5.94% with a 1.5% fee and is available up to 75% LTV with no ERCs. 

New F2 - for clients with some historical blips on their credit rating - two-year discount products start from 5.99% at 75% LTV with a 1.5% fee and no ERCs.

In addition, F2 two-year discount products for HMOs up to six occupants are available at 6.09% with a multi-unit freehold product at 6.19%. 

Tom Jacob, director of product at Foundation Home Loans, said: “Landlords continue to balance opportunity with requirements for ongoing flexibility when it comes to their mortgage finance requirements. That need for both certainty and flexibility remains one of the key priorities we hear from our broker partners in terms of what they can offer landlord borrowers. 

“That being the case these price cuts and the launch of new products are designed to deliver just that. Our two-year discount products with no ERCs and the ERC3 product, which offers a five-year fixed rate but only a three-year tie-in, deliver the kind of adaptable finance structure that landlords need right now.

“We believe these changes position Foundation Home Loans strongly in an evolving buy-to-let market and reinforce our commitment to providing products that help landlords plan with confidence while keeping their future options open.”