It also launches a new two-year fixed rate product for professional borrowers
Residential by Foundation, the residential brand of intermediary-only specialist lender Foundation Home Loans, has announced rate reductions across its product range.
The lender has made 30 basis point cuts to its F1 two- and five-year fixed rate products for key workers. These products are aimed at borrowers who miss mainstream eligibility due to historical credit issues.
Rates now start at 6.09% with a £595 fee, one free standard valuation, and no application fee. Foundation offers higher income multiples to a range of key worker borrowers.
Pricing has also been reduced across other fixed rate residential products, including Green ABC+ products, designed for owner-occupiers purchasing or remortgaging energy-efficient properties with an EPC rating of C or above, with rates reduced by 10 basis points. Rates now start at 6.34% to 85% LTV with a £595 fee and one free standard valuation.
The lender has also cut rates on both its F1 and F2 joint borrower sole proprietor (JBSP) products. These two- and five-year fixed rate products have been reduced by 10 basis points, with pricing now starting from 6.24% with a £795 fee. These products allow up to four borrowers to be named on the mortgage, with up to two named on the property deed.
Residential by Foundation has also launched a new two-year fixed rate product for professional borrowers, available at both 75% and 85% LTV. Foundation’s Professionals mortgages offer a higher income multiple to a range of qualified professionals.
The new two-year Professional products are offered at 6.44% for 75% LTV and 6.74% for 85% LTV, both with a £995 fee. The rate on its five-year fix for Professionals has been cut by up to 25 basis points, with the 75% LTV product now available at 6.14%.
“We’re acutely aware of the growing number of residential borrowers who are either just beyond the mainstream, or have unique circumstances and needs that can’t simply be met by ‘vanilla’ mortgage products,” said Tom Jacob (pictured), director of product and marketing at Foundation Home Loans.
“This is why we’re very pleased to be announcing a significant array of price cuts to a wide range of ‘Residential by Foundation’ products across all our borrower tiers. We have focused on expanding our range of specialist residential products, including these new products for Professional borrowers, plus we have specific products for key workers, joint borrower sole proprietor, those buying or remortgaging energy-efficient homes, and a whole host of owner-occupiers who either want to get a first foot on the ladder or want to move up it.
“The second half of 2024 has now begun, and we have a very positive outlook for the UK mortgage market for the rest of the year; those advisers seeking mortgage solutions for specialist residential borrowers should contact us to see how we can help meet their needs and circumstances.”
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