Foundation Home Loans has announced a series of rate reductions and new product launches across its buy-to-let range.
The intermediary-only specialist lender has introduced new 2-year discount products and reduced rates on its existing ERC3 and discount options.
The changes follow the Bank of England’s decision to hold the Base Rate at 4% last week and come ahead of the Autumn Budget.
The ERC3 range offers 5-year fixed rates with early repayment charges (ERCs) applying for only the first three years, giving borrowers the security of a longer-term product with added flexibility to refinance or change their deal before maturity.
The new 2-year discount products, which have no early repayment charges and are linked to the Bank Base Rate, are designed for landlords seeking shorter-term flexibility and responsiveness to market changes.
Among the changes, the F1 5-year fixed-rate ERC3 product for clients with an almost clean credit history has been reduced by 0.10% to 5.54%, with a 1% fee and loans available up to 75% loan-to-value (LTV).
The F1 2-year discount product has also been reduced by 0.05% to 5.94%, with a 1.5% fee, up to 75% LTV and no early repayment charges.
A new F2 2-year discount product, designed for clients with some historical credit issues, has been launched at 5.99% with a 1.5% fee and up to 75% LTV, also with no early repayment charges.
Additional new F2 2-year discount options have also been introduced for houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs), with rates of 6.09% and 6.19% respectively.
Both products carry a 1.5% fee and are available up to 75% LTV, with no early repayment charges.
Tom Jacob (pictured), 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.”
He added: “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.”
