According to the lender, the cuts cover both individual and limited company fixed-rate products for both single tenancy properties, as well as HMOs and short-term lets, and are up to 20 basis points for some products.
Specific product changes include a rate reduction to Foundation’s five-year fix, 75% LTV (2% fee) product for F1 borrowers from 3.24% down to 3.15%, reduction to the two-year fixed rates for F1 borrowers, to 2.44% at 65% LTV and 2.59% at 75% LTV and rate cuts across all its short-term let products of between 10 to 15 basis points, now starting at 2.99%.
The rate cuts follow Foundation’s introduction of a number of buy-to-let criteria enhancements last month including a new ICR for basic-rate taxpayers which reduced down from 145% of rental income to 125%, plus an increase in maximum loan sizes across its entire product range (including HMOs, multi-unit blocks and short-term lets) for both 65% and 75% LTV.
Jeff Knight, Director of Marketing at Foundation Home Loans, said: “We have become well known for providing solutions for portfolio landlords, particularly those financing a property via a limited company. The recent changes we have made, combined with these rate changes, will make us even more appealing to intermediaries and their clients. And we have also recently increased the size of our sales team, so it means we are well placed to continue our steep growth trajectory.”
