Rates are cut, and a new limited edition five-year fix is launched
Foundation Home Loans and The Mortgage Lender (TML) have announced product updates, providing potential benefits for buy-to-let borrowers in the current market.
Foundation Home Loans, through its Buy to Let brand, has introduced a limited edition five-year fixed rate product for house in multiple occupation (HMO) borrowers, offering up to 75% loan-to-value (LTV) at a rate of 5.74% with a fixed fee of £4,995. The product requires a minimum loan size of £200,000.
The specialist lender has also reduced rates on other F2 products, with a 25 basis point (bps) reduction on its five-year HMO fix, now starting at 6.14% up to 75% LTV, and a 15 bps reduction on its five-year short-term let fix, starting at 6.44% up to 75% LTV.
Under its Solutions by Foundation brand, which caters to more specialised buy-to-let needs, Foundation has also announced price cuts.
These include 10bps cuts to Large HMO and HMO Plus rates, with new rates starting at 6.49% and 6.34% respectively, up to 75% LTV with a 2% fee. Multi-unit freehold block (MUFB) rates have been reduced by 20bps, starting at 6.24% up to 75% LTV with a 2% fee. Expat products have seen reductions of up to 15bps, with rates starting at 6.64% up to 75% LTV and a 2% fee.
“Landlords continue to seek higher rental yield and are increasingly drawn to higher-yielding properties like HMOs and MUFBs,” said Tom Jacob (pictured left), director of product and marketing at Foundation Home Loans. “With these cuts, landlord borrowers should find an easing of affordability, allowing them to either add to portfolios or refinance existing properties.”
Meanwhile, TML has announced rate reductions across its five-year fixed 75% LTV buy-to-let products.
In its BTL Core range, the 75% LTV product with a 5% fee has been reduced from 5.26% to 5.06%. The Portfolio Multi-Loan product now has a reduced rate of 5.72%, down from 5.92%, for the five-year fixed 75% LTV product with a 2% fee. Additionally, the 75% LTV product with a £2,495 fee has been lowered from 6.06% to 5.86%.
“We’re pleased to announce rate reductions across a number of our BTL products,” said Steve Griffiths (pictured right), chief commercial officer at The Mortgage Lender. “We continue to remain committed to our broker partners and our customers in offering attractive rates to borrowers, whether purchasing or remortgaging.”
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