"Advisers will have noted over the past few weeks in particular that the direction of travel on rates has been downwards"
- Tom Jacob, director of product and marketing at Foundation Home Loans
Buy to Let by Foundation, the buy-to-let brand of Foundation Home Loans, has announced a number of price cuts across its product ranges.
The lender is announcing 15 basis points cuts to both its F1 – for clients with an almost clean credit history – and F2 – for clients financing a more specialist property type and/or those with some historical blips on their credit rating – two-year fixed-rate products, with rates now starting from 6.49% with a 1.5% fee.
Product pricing has also been cut by up to 10 bps on Foundation’s pound-for-pound F1 and F2 remortgage-only products. These two-year fixed-rates now have rates starting at 6.64% with a 1.5% fee, and all applicants are assessed at pay rate with an ICR of 125%.
In Foundation's F2 range, a two-year fixed-rate large portfolio product is down by 10bps to 6.79%, with one free standard valuation, no application fee and a 1.25% product fee.
F2 two-year fixed-rate HMO products have also reduced by up to 10 bps, now starting from 6.74% with a 2% fee, while F2 two-year fixed-rate short term let products have decreased by 5bps, starting from 6.89% with a 2% fee.
In addition, Buy to Let by Foundation has reduced the product fee on its F2 five-year fixed-rate large loan product by 0.25%. The fee is now 1.25% for products up to 70% LTV.
These price cuts follow the launch of a new five-year fixed rate limited edition product at the end of June. Available within its F1 tier – for clients with an almost clean credit history – the new product is available up to 75% LTV with a rate of 5.59%, and a 2.25% fee.
Tom Jacob, director of product and marketing at Foundation Home Loans, said: “Advisers will have noted over the past few weeks in particular that the direction of travel on rates has been downwards, and at Buy to Let by Foundation we’re pleased to announce a series of further price cuts by up to 15 basis points across a number of F1 and F2 products.
“Our two-year fixes for both F1 and F2 borrowers have seen a considerable cut, while we’re also focused on supporting existing landlord borrowers who are not seeking to add to their loans and are instead seeking pound-for-pound remortgages at competitive rates.
“Other price cuts come across a number of F2 products including large portfolio, HMO and short-term lets, all areas which have grown in popularity amongst landlords particularly as they seek higher-yielding property investments.
“We’ll continue to closely monitor the market in order to ensure our buy-to-let product range is as competitive as it can be, and that we are meeting the needs of advisers and their landlord clients.”
