‘Buy to Let by Foundation’, the buy-to-let division of Foundation Home Loans, has launched new products for short-term and holiday lets and reduced fees across its existing range.
The new offerings include fee-assisted, 2- and 5-year fixed-rate products for short-term lets with up to 75% loan-to-value (LTV) ratios, starting at rates of 6.79%, and a 1.25% fee.
Additionally, a 2-year fixed-rate holiday let product has been introduced, available up to 70% LTV, featuring a 2% fee and a rate of 6.99%.
In a broader pricing update, the fee for the F1 product — targeting portfolio and non-portfolio landlords with nearly clean credit histories — has been reduced from 1.75% to 1%. This product offers 5-year fixed rates with early repayment charges applicable only in the first three years. The fees for the F2 Large Portfolio products have also been reduced, now featuring a rate cut from 1.5% to 1.25%, with added benefits like free valuations and no application fees.
Tom Jacob, director of product and marketing at Foundation Home Loans, said: “We continue to review our product and criteria right across the buy-to-let range, and as a result of this, we’re able to launch these new, specific short-term and holiday let products, as well as cut fees across a number of other product options.
“Landlords continue to look at the ways and means by which they can diversify their portfolio, and both short-term and holiday let options are growing in popularity, not least because of the potential for greater rental yield levels on these types of properties.”
Jacob further noted the financial benefits of the reduced fees, highlighting that many landlords add these fees to their loans, thus impacting the overall cost of borrowing: “At the same time, we have been able to cut fees across a number of products, saving money upfront for landlords and over the term of the mortgage, given that large numbers of borrowers add the fees to the loan.”
