According to the lender, the changes will cover their 75% LTV five-year fix, now at 3.24% reduced by 10 basis points – which comes with a 2% fee and their ‘ERC-3’ product, now fixed for five years at 3.59% (10 basis points reduction) with early repayment charges for the first three years only. Other products will also benefit from the reduced rates.
Foundation has also cut the rate on its recently-launched five-year fix Green Reward Remortgage, down to 3.59% from 3.65% at 75% LTV and a maximum loan size of £1m, and introduced a new 65% LTV version of the product, available at 3.49%, allowing a larger maximum loan size of £1.5m.
Both come with £750 cashback on completion plus a reduced fee of 0.65% on the 65% LTV product and 0.75% on the 75% LTV product.
The Green Reward five-year fixed-rate mortgages for landlord borrowers are available on those private rental sector properties which have an Energy Performance Certificate (EPC) rating of ‘C’ or above – dated within the last 12 months, except for listed properties that are not eligible.
The five-year fixes are available to both individuals as well as limited company borrowers, and Foundation’s ICR is calculated using the pay rate on five-year fixes at only 125% for limited companies and basic rate taxpayers, and 145% for others. There is no limit on the background portfolio size of the borrower, subject to a maximum of £3m with Foundation.
George Gee, Commercial Director at Foundation Home Loans, said: “These rate cuts to some of our most popular five-year fixes are designed to support advisers and their landlord clients, particularly if they are looking for a more generous loan amount; the cuts of 10 basis points make these even more competitive and will enhance our core range supporting those landlords looking to add to their portfolios or to remortgage to an excellent rate.
“On top of this, and as a direct result of the popularity of our new Green Reward Remortgage which supports those landlords improving their properties and their EPC rating, we have been able to cut the rate on our original 75% LTV rate, and introduce a new 65% LTV offering which comes with an improved maximum loan amount of £1.5m.
“As always, our aim here is to support those landlord borrowers who just miss out on mainstream credit scores and to support our adviser partners as they seek to grow their buy-to-let advice businesses.”
