Foundation trims BTL rates and adds new discount options

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Foundation Home Loans has introduced a series of rate cuts and new discount products across its buy-to-let range.

The intermediary-only lender said the refreshed range responds to broker feedback and reflects the Bank of England’s decision to hold the base rate at 4% last week. New two-year discount products – all without early repayment charges and linked to the base rate – have been added across its F1 and F2 ranges, while several existing ERC3 and discount products have been reduced in price.

Foundation’s ERC3 structure offers a five-year fixed rate with early repayment charges applying only in the first three years. The lender said this continues to appeal to landlords wanting longer-term payment certainty without a full five-year tie-in.

Among the headline changes, the F1 five-year ERC3 product – aimed at landlords with an almost clean credit history – has been cut by 0.10% to 5.54%. It carries a 1% fee and is available up to 75% loan-to-value. The F1 two-year discount product has been reduced by 0.05% to 5.94% with a 1.5% fee, also up to 75% loan-to-value and with no early repayment charges.

Foundation has also expanded its F2 range for borrowers with minor credit blips, adding a new two-year discount at 5.99% with a 1.5% fee. Two further F2 discounts have been introduced for house-in-multiple-occupation properties and multi-unit freehold blocks, priced at 6.09% and 6.19% respectively, each available to 75% loan-to-value and without early repayment charges.

Tom Jacob, director of product at Foundation Home Loans, said: “Landlords continue to balance opportunity with requirements for ongoing flexibility when it comes to their mortgage finance requirements.

“That need for both certainty and flexibility remains one of the key priorities we hear from our broker partners in terms of what they can offer landlord borrowers.

“That being the case these price cuts and the launch of new products are designed to deliver just that. Our two-year discount products with no ERCs and the ERC3 product, which offers a five-year fixed rate but only a three-year tie-in, deliver the kind of adaptable finance structure that landlords need right now.

“We believe these changes position Foundation Home Loans strongly in an evolving buy-to-let market and reinforce our commitment to providing products that help landlords plan with confidence while keeping their future options open.”

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