Thursday, July 7, 2022

Foundation Home Loans cuts BTL rates, launches green product

Home Loans

Its ‘ERC-3’ product is now fixed for five years at 3.59% with early repayment charges for the first three years only

Foundation Home Loans has made a number of rate reductions across its five-year fixed-rate buy-to-let (BTL) range and introduced a new 65% loan-to-value (LTV) Green Reward remortgage product.

Foundation’s 75% LTV five-year fix has reduced by 10 basis points to 3.24% and comes with a 2% fee.

Its ‘ERC-3’ product is now fixed for five years at 3.59% with early repayment charges for the first three years only.

Additionally, 65% LTV five-year fixes have been reduced by 10bps and now start at 3.14% with a 2% fee. A large loan option has been reduced to 2.99% with a 2.25% fee and a maximum loan of £2m.

Finally, an early remortgage 75% LTV five-year fix is down from 3.49% to 3.39%, also with a 2% fee.

The lender has also cut the rate on its recently-launched five-year fixed rate Green Reward Remortgage, down to 3.59% from 3.65% at 75% LTV on a maximum loan size of £1m. It has also 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 mortgages are available on 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 which 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 £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.

He said: 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.


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