It decides to replace its current BTL mortgage products
Intermediary-only specialist lender Foundation Home Loans has launched a new range of buy-to-let mortgages, replacing the entire range except for the withdrawn two-year fixed-rate mortgages.
The lender has reduced 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. It has also introduced new discount rates at 75% LTV for standard applicants, those seeking to purchase or refinance standard HMOs, and for 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.
The lender had provided advisers with 48 hours’ notice for the withdrawal of all its previous buy-to-let range to give 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 (DIPs) they had into full mortgage applications (FMAs).
George Gee (pictured), commercial managing director at Foundation Home Loans, said the decision to replace their buy-to-let mortgage product range was made in the context of what is happening within the markets right now.
Read more: Lenders relaunch products, update rates today.
“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,” Gee added. “However, we have cut our discount product pricing which should provide a competitive option for those seeking two-year buy-to-let mortgages.
“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.”
Gee stressed that Foundation’s appetite to lend in the buy-to-let space “remains undimmed.”
“We are introducing new discount rates, plus reintroducing our early remortgage offering in order to support advisers and their clients’ activities during what is, undoubtedly, a somewhat uncertain mortgage environment,” he said. “We would urge advisers to contact Foundation so that we can best support them and meet their requirements in the days ahead.”
