FHL had provided advisers with 48 hours' notice for the withdrawal, giving as much time as possible to secure the previous product pricing for clients, and was providing 72 working hours (plus the upcoming weekend) to allow them to convert any decision-in-principles they had into complete mortgage applications.
The entire buy-to-let product range has been replaced except for the withdrawn two-year fixed-rate mortgages.
The new range will see the lender reduce its F1 75% two-year discount rate by 25 basis points, with rates of 4.19% for 75% LTV and 4.74% for 80% LTV available to provide a competitive two-year option for buy-to-let borrowers.
Additionally, FHL has also introduced new discount rates at 75% LTV for standard applicants, those seeking to purchase/refinance standard HMOs, and short-term lets. Foundation has also reintroduced its F1 five-year fix ‘Early’ remortgage product that allows landlord borrowers to remortgage within six months of the initial purchase.
Foundation reiterated its commitment to the buy-to-let market and cited the current strength of its service levels – it is currently taking just one day for DIP referral, buy-to-let mortgage application and underwriter review, and averaging just 40 seconds to answer incoming calls.
George Gee, (pictured) Managing Director (Commercial) at Foundation Home Loans, said: “Our decision to replace our buy-to-let mortgage product range was not taken lightly, but in the context of what is happening within the markets right now, and in order to respond to that and to the changes made by our lender peer group, we needed to act.
“We hope that by providing as much notice as possible to advisers, they will be able to convert their DIPs into FMAs and secure the previous product pricing before we replaced the whole range this morning.
“As you will have seen there is considerable pressure on lenders’ ability to provide shorter-term fixes right now and we have reluctantly made the decision not to replace these in the new range. However, we have cut our discount product pricing which should provide a competitive option for those seeking two-year buy-to-let mortgages.
“Our service remains at very high levels which will allow us to work quickly on behalf of advisers over the next few days, and we want advisers to know we are here and ready to help them in order to get the best outcomes for their landlord clients.
“Foundation’s appetite to lend in the buy-to-let space remains undimmed and we are introducing new discount rates plus reintroducing our early remortgage offering in order to support advisers and their client’s activities during what is, undoubtedly, a somewhat uncertain mortgage environment.
“We would urge advisers to contact Foundation so that we can best support them and meet their requirements in the days ahead.”
