Key reductions include portfolio landlord rates, HMO financing, and green property mortgages
Specialist lender Foundation Home Loans has announced rate reductions across its buy-to-let and residential mortgage products.
The lender’s Buy to Let by Foundation brand has implemented rate cuts on its special and limited edition products, targeting both F1 borrowers — those with near-clean credit histories — and F2 borrowers, who are financing more complex property types.
Among the key changes, F1 Special Portfolio Landlord-only rates have been reduced by 25 basis points (bps), now starting at 4.59% with a 6% fee. F1 Special Fee-Assisted Portfolio Landlord-only rates have been reduced by 15bps, now beginning at 4.84% with a 5% fee. F1 Special two-year fixed rates have also been cut by 35bps, now available from 4.24% with a 4% fee, or 4.74% with a 3% fee.
In the F2 category, HMO Special two- and five-year fixed rates have been reduced by 35bps and 25bps, respectively, with rates now starting at 4.79% and 5.29%, both carrying a 3% fee.
In addition, Foundation has revised three limited edition products. The two-year fixed rate has been reduced by 14bps to 5.55%, with a 1.25% fee. A new five-year fixed rate has been introduced at 5.54%, with a flat fee of £2,495.
The Green ABC+ five-year fixed rate, aimed at properties with an energy performance certificate (EPC) rating of ‘A’ to ‘C’, has been reduced by 5bps to 5.34%, with a £4,495 flat fee.
The lender’s Residential by Foundation brand has also cut rates on its F1 and F2 fee-assisted two- and five-year fixed rate products.
F1 products have been reduced by up to 30bps, with rates now starting at 5.94%. F2 products have seen similar reductions, with rates starting from 6.14%. These residential products come with a £795 fee, free valuation, and no application fee.
Commenting on the latest price cuts, Tom Jacob (pictured), director of product and marketing at Foundation Home Loans, said the company is responding to a period of significant product rate movement. He noted that in the buy-to-let space, the lender is offering competitive rates and various fee structures to meet affordability needs, giving advisers and their landlord clients flexibility.
Jacob also highlighted the focus on portfolio landlords, HMO financing, and green properties with strong EPC ratings. He added that for specialist residential borrowers, the company is enhancing its F1 and F2 product tiers, making more competitive options available for those who miss out on mainstream credit offerings.
“Whether you have a landlord client looking to expand or refinance their portfolio, or residential borrowers requiring specialist underwriting, we have plenty to offer with today’s price cuts,” Jacob said.
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