Foundation Home Loans has launched a fresh Limited Edition five-year fixed rate for portfolio landlords and reduced the price of its two-year fix, signalling renewed competition in the specialist buy-to-let market as brokers anticipate a post-Budget uptick in activity.

The new F1 five-year fixed rate, available up to 75% loan to value, is priced at 5.24% with a 1.75% fee. It includes a free standard valuation and carries no application fee.

The product is open exclusively to portfolio landlords whose credit profile fits Foundation’s F1 tier, which caters for borrowers with an almost clean credit history.

The lender has also cut the rate on its existing 75% loan to value two-year Limited Edition fixed rate to 4.99%, a reduction of 25 basis points. The product has a £2,995 fee and a minimum loan size of £200,000.

Foundation said the adjustments are designed to help brokers stimulate end-of-year business and support landlord clients who may have deferred decisions in the run-up to the Budget.

With key tax measures for individual landlords not due to take effect for at least 18 months, the lender expects more borrowers to resume previously paused plans.

MARKET RESPONSE

Tom Jacob, director of product at Foundation Home Loans, said: “Many landlords have spent the last few weeks waiting to see what the Budget would bring.

“Now that we have more clarity, the changes that could affect them are still some way off, and we expect a number of brokers to see renewed interest from clients who had paused decisions.

“By cutting the rate on our F1 Limited Edition two-year fixed, we are giving brokers a sharper option for larger loans, with a simple flat fee and a competitive rate.

“Alongside this, our new F1 Limited Edition five-year fixed is aimed squarely at portfolio landlords who are focused on growing and reshaping their holdings, helped by the combination of a competitive rate, percentage fee, free standard valuation and no application fee.”

He added: “We know brokers want lenders who stand with them during all market periods. These changes show our ambition to support both brokers and their landlord clients with clear options, steady service and products that work for the type of cases they are placing.

“Our teams remain on hand to help with case queries, product selection and any support advisers need as activity builds again.”