Foundation slashes rates by up to 30bps, Paragon Bank by up to 20bps, and MPowered by up to 22bps
Foundation Home Loans, Paragon Bank, and MPowered Mortgages have all made significant cuts across their mortgage offerings, targeting landlords and property investors with attractive rates and flexible options.
Foundation Home Loans announced a reprice of its full product range, with reductions of up to 30 basis points (bps) across its core buy-to-let products.
The cuts affect a variety of offerings, including EPC Saver products, which now start at 5.84% for two- and five-year fixed rates up to 75% loan-to-value (LTV).
Other notable reductions include the fee-assisted remortgage-only product, now available at 5.84%, and the house in multiple occupation (HMO) limited edition five-year fixed rate, which has been reduced to 5.69%. The lender also introduced new pricing for its holiday let products, with rates starting at 6.34%.
“Last week, we were able to announce a number of rate cuts across our special buy-to-let products, and this time, we have been able to review all our core range pricing, making cuts by up to 30 basis points across the widest range of mortgages,” said Tom Jacob (pictured left), director of product and marketing at Foundation Home Loans.
Another specialist lender, Paragon Bank, has refreshed its buy-to-let mortgage range, cutting rates by up to 20bps on 20 products.
The lender’s updated range includes two- and five-year fixed rate products available up to 75% LTV, with rates starting at 4.60% for two-year fixes on properties with an energy performance certificate (EPC) rating of ‘A’ to ‘C’.
Five-year fixes are available from 5.45% for properties with similar energy ratings, with options for HMOs and multi-unit blocks (MUBs) also included in the range. The product refresh also features a £2,995 fee option for larger loans, with the LTV cap increased to 75%.
“An improving economic outlook gives us the opportunity to carry out a positive refresh of our range, taking up to 20bps off 20 products,” said Louisa Sedgwick (pictured centre), recently appointed managing director for mortgages at Paragon Bank. “We’ve also simplified our offering, and borrowers can choose from deals with nil product fees, percentage fees or a flat fee of £2,995.”
Meanwhile, MPowered Mortgages has also reduced its fixed rate mortgages by up to 22bps, marking the third rate cut by the lender in two weeks.
Five-year fixed rates now start at 4.01%, with three- and two-year fixes at 4.19% and 4.41%, respectively, for 60% LTV with a £999 fee. The lender also made a notable reduction to its standard variable rate (SVR), bringing it down from 8.74% to 7.49%.
“Rates are coming down, and it’s great to be passing on this good news to borrowers,” said Stuart Cheetham (pictured right), chief executive of MPowered Mortgages. “We have not just passed on the base rate reduction to borrowers but reduced our SVR by a significant 1.25% since May.”
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