Foundation Home Loans has reduced rates within both its residential and buy-to-let ranges.
Its residential range is designed to meet the needs of borrowers with complex income or employment such as the recently self-employed and those looking to optimise their affordability by using up to 100% of a wide range of income types including 100% of bonus, overtime and/or commission, retirement and investment incomes.
Foundation is cutting rates by up to 50 basis points on both its residential two and five-year fixed rate mortgages:
- Residential two-year fix at 65% LTV now at 2.89% (from 2.99%) and 75% LTV at 3.19% (from 3.29%); five-year fix at 65% LTV now 3.39% (from 3.49%) and 75% LTV at 3.54% (from 3.69%). Products come with a £995 fee.
- Fee-assisted residential remortgages include a two-year fix at 65% LTV now 3.19% (from 3.49%) and 75% LTV at 3.39% (from 3.89%); five-year fix at 65% LTV now 3.59% (from 3.99%) and at 75% LTV 3.79% (from 4.29%). These products come with a reduced £595 fee, no application fee, a free standard valuation and £250 cashback upon completion.
The specialist lender accepts retained profits and one year’s accounts for the self-employed, and it caters for borrowers with multiple, or unusual, income sources including the more recently self-employed, and employed clients with high commissions or bonuses.
The lender has also cut rates on its two and five-year buy-to-let fixed-rate mortgages; the products are designed to support landlords looking for a more generous loan for their rent, as ICR is calculated using the pay-rate on five-year fixes at Foundation, or the notional rate of 5.5% for shorter rates, and stress-tested at 125% for limited companies and basic-rate taxpayers, and 145% for others.
Selected cuts on Foundation’s buy-to-let range include:
- Two-year fixed rate which now starts at 2.89% up to 65% LTV (down from 3.09%).
- Five-year fix up to 75% LTV which has been reduced to 3.34% from 3.44%.
- 80% LTV two-year fixed-rate product which now has a sub-4% rate of 3.99% (down from 4.09%).
Meanwhile, the five-year buy-to-let fixed rate for large loans over £500,000 up to 65% LTV with a 2.25% fee has been reduced by 10bps to 3.09%; and the buy-to-let two- and five-year Remortgage Specials with a 1% product fee have also been reduced, now starting from 3.29% (65% LTV) and come with incentives including no application fee, a free standard valuation and £250 cashback upon completion.
George Gee (pictured), commercial director at Foundation Home Loans, said: “We have taken this opportunity to make our ranges even more competitive for both landlords and residential borrowers, by cutting a number of our two- and five-year fixes by up to 50 basis points.
“In the residential range particularly, this is an opportunity for advisers who are seeing an increasing number of clients with complex income or multiple income sources, and the self-employed who may have only one-year accounts, to find competitively-priced mortgages combined with flexible criteria. Landlord borrowers will also benefit from cuts to various products including our remortgage specials, our early remortgage offering, and those seeking large loans.”
