Foundation Home Loans has announced a series of rate reductions and product enhancements across its residential range, including an expanded green mortgage offering aimed at rewarding energy-efficient homes.

The intermediary-only specialist lender said selected rates have been reduced by up to 20 basis points, with eight new products introduced to give brokers greater flexibility across a wider range of loan-to-value options.

Foundation said the refresh followed an improvement in market conditions and lower swap rates, allowing it to offer “strong, well-priced options” for specialist borrowers.

GREEN RANGE EXPANSION

A major feature of the update is the expansion of the lender’s Green Residential range, which is available on properties with an Energy Performance Certificate rating of A to C.

The range will now include a £500 cashback on completion, replacing the previous free valuation incentive. For the first time, the green products will also be available across all Foundation’s credit tiers, from F1 to F4.

The move marks a significant broadening of the lender’s environmentally focused strategy, extending eligibility to borrowers with imperfect credit histories.

RATE CUTS ACROSS KEY PRODUCTS

Rate reductions have been made across Foundation’s F1–F4 Core, Remortgage, EPC Saver, Joint Borrower Sole Proprietor, Professionals and Key Worker ranges.

For borrowers who narrowly miss mainstream lending criteria, F1 remortgage products have been cut by up to 0.15%, with rates now starting from 5.49%.
Selected F1 five-year fixes at higher loan-to-values have been reduced by 0.10%.

New green products have also been added within the F1 and F2 tiers, including a two-year fix at 5.29% up to 65% LTV, and a five-year fix at 5.59% up to 75% LTV, each with a £595 fee and £500 cashback.

For borrowers with more recent credit issues, new F3 and F4 green products have been introduced at 75% LTV, with rates starting from 5.89% and 6.19% respectively.

F1 EPC Saver products have been reduced by up to 0.20%, now starting at 5.64%, while F1 and F2 Joint Borrower Sole Proprietor products have been trimmed by up to 0.15%.

F3 and F4 ranges also benefit from cuts of up to 0.20%, with new rates starting from 5.84% and 6.14%.

“SUPPORTING BROKERS THROUGH THE YEAR”

Tom Jacob (pictured), director of product at Foundation Home Loans, said: “With swaps easing recently, we’ve taken the opportunity to strengthen our residential proposition and deliver a range that remains competitive across every customer type.

“These changes reflect both a desire to support brokers through the remainder of the year and a recognition of how the market is evolving, with growing demand for products that can adapt to more diverse borrower circumstances.”

He added: “The extension of our Green range to cover all credit tiers is a key milestone for Foundation Home Loans. It underlines our commitment to supporting environmentally conscious lending while ensuring it remains inclusive and accessible to residential borrowers at every level.”

Jacob said the refreshed range reinforces Foundation’s goal of providing “a sustainable, specialist, and consistent offering across the residential market.”