New BTL, remortgage and fixed rates all drop
Specialist lender Foundation Home Loans has announced rate reductions of up to 0.50% across its core buy-to-let mortgage products, with new rates starting from 5.29%.
The cuts apply to Foundation’s three main buy-to-let product tiers. The F1 tier is designed for borrowers with a near-clean credit history, F2 for those with more specialised property needs or minor credit issues, and F3 for clients with more recent credit blips.
Notable changes include reductions on F1 and F2 two- and five-year fixed rates, which are down by up to 0.35%. Rates now start at 5.29% with a 1.5% fee for loans up to 80% loan-to-value (LTV). F2 holiday let fixed rates are now available from 6.19% with a 2% fee for loans up to 75% LTV. The F2 HMO limited edition five-year fixed rate has been reduced to 5.74%, with the fee lowered to £2,995 from £4,995 for loans up to 75% LTV.
In addition, the F1 ERC3 five-year fixed rate — offering early repayment charges for only the first three years — has seen a 0.20% reduction, bringing the rate down to 5.79% with a 1% fee for loans up to 75% LTV. F1 and F2 green fee-assisted five-year fixed rates have also been cut by up to 0.20%, with rates starting at 5.44% and a 1.25% fee for loans up to 75% LTV.
Further rate cuts apply to remortgage-only products, energy performance certificate (EPC) saver products, HMO fee-assisted options, and short-term let products.
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“These rate cuts to our core buy-to-let product offering cover all our borrower tiers and vast array of the many product options we offer, including limited edition mortgages, and sector-specific ones such as HMOs, holiday lets, and short-term lets,” said Tom Jacob (pictured centre), director of product and marketing at Foundation Home Loans.
“Overall, we believe this is a highly competitive buy-to-let product range with a wide variety of options available to all kinds of landlord borrowers. We are keen to work with advisers and their clients in order to find the right solutions, and to explore how we can support their advice propositions in this highly important sector.”
Meanwhile, two other mortgage lenders have also announced reduced rates on their buy-to-let products.
Family Building Society revealed a 30-basis point reduction on its five-year fixed rate BTL mortgage, now priced at 4.59%.
The product also features an increased maximum loan-to-value (LTV) ratio of 65%, up from 60%, and a lowered minimum loan amount of £45,000, previously set at £100,000. The maximum loan limit has been raised to £750,000, compared to the prior cap of £600,000.
Additional benefits include no application or product fees, free property valuations up to £500,000, and £500 cashback for remortgage customers.
The mutual also announced the withdrawal of its 60% LTV limited company five-year fixed rate product, which will not be replaced.
“The launch of this new, enhanced buy-to-let product for UK landlords comes at a time when the rental market is facing many challenges,” said Darren Deacon (pictured left), head of intermediary sales at Family Building Society. “This competitive five-year fixed rate product will be a welcome boost to those landlords looking for financial certainty over the medium term.”
Buy-to-let specialist Zephyr Homeloans has also reduced rates by 0.20% on its two-year BTL products and by 0.29% on its five-year offerings.
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The new rates are targeted at properties with higher energy performance certificate (EPC) ratings. For properties with an ‘A’ to ‘C’-rated EPC, Zephyr’s two-year fixed rates start at 3.24%, and its five-year fixed rates begin at 4.30%, both with a 7% fee. For houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs), the two- and five-year rates are set at 3.44% and 4.50%, respectively, also with a 7% fee.
For properties with lower EPC ratings, rates are slightly higher, starting at 3.34% for two-year fixed products and 4.35% for five-year fixed rates. Zephyr offers the same loan structure for HMOs and MUFBs in this category, with rates beginning at 3.54% for two years and 4.55% for five years.
“We’re very pleased to provide further reductions in the current dynamic market on deals that will enable brokers to source the best mortgage to suit their landlord clients’ needs,” said Paul Fryers (pictured right), managing director at Zephyr Homeloans.
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