Foundation Home Loans has unveiled a raft of changes to its residential mortgage offering, including rate reductions of up to 50 basis points and the introduction of new high loan-to-value (LTV) products, as it looks to enhance its appeal to underserved borrower segments.
The specialist intermediary-only lender confirmed rate cuts across all of its F1 to F4 tiers, along with new 90% LTV fixed rate options for borrowers with smaller deposits and a broader selection of products for key workers.
Foundation said the changes were designed to improve accessibility and affordability for groups often overlooked by mainstream lenders, including first-time buyers, professionals, key workers and purchasers of energy-efficient homes.
Among the new launches is a two- and five-year fixed rate product at 90% LTV, available in Foundation’s F1 tier from 6.54% with a £995 fee. For key workers, a five-year fixed rate at 75% LTV is now available at 5.64%, carrying a £595 fee, with no application fee and a free valuation.
In addition to new product launches, Foundation has implemented sweeping rate reductions across its existing residential range. F1 two- and five-year fixed rates have been reduced by 20bps, with rates now starting from 5.39%. F1 Green fixed rates have also been cut by up to 15bps, with pricing from 5.44%.
KEY WORKERS
Key worker products in the F1 tier have seen some of the most significant reductions, with two- and five-year fixed rates down by as much as 50bps, now starting at 5.59%.
Professional borrowers also benefit from up to 50bps off selected five-year fixes, now from 5.74%, which also come with a £350 cashback incentive.
Rate reductions continue across Foundation’s other tiers, with F2 rates down 10bps to start from 5.79%, and F2 Green options beginning at 5.74%. F3 products have been cut by up to 20bps, with rates starting from 6.09%, while selected F4 products have dropped by up to 10bps to begin at 6.39%.
Tom Jacob (pictured), director of product and marketing at Foundation Home Loans, said the latest changes reaffirm the lender’s commitment to customers who fall outside standard criteria.
“These changes reflect our ongoing commitment to residential borrowers who don’t quite fit the mainstream mould and we remain focused on delivering a range of specialist solutions, backed by robust underwriting and consistently strong service levels,” he said.
“Our ultimate aim is to provide our intermediary partners with a more versatile product range that responds to ever-evolving client needs, and through the introduction of new high-LTV options, reduced rates, and expanded product options for key workers, we’re delivering greater choice where it’s needed most.”
