Foundation Home Loans has made changes across its residential product range, designed for intermediaries’ more “extraordinary” cases, it says.
The lender has simplified its range by having rates with a maximum LTV of 65%, 75% and 80%. Previously, the lowest rate of 2.79% was for a maximum LTV of 60%; now the maximum LTV is 65%.
In addition, Foundation has also increased its maximum loan size at the lower LTV level from £1.5m to £2m.
At 75% LTV, Foundation has cut all initial residential rates for both F1 and F2 borrowers, reducing its fixed rates by up to 20 basis points and discount rates by 10 basis points.
Products available include:
F1 borrowers: 3.39% two-year fixed rate – reduced from 3.59%; 3.29% two-year variable rate – reduced from 3.59%; 3.79% five-year fixed rate – reduced from 3.99%.
F2 borrowers:> 3.59% two-year fixed rate – reduced from 3.79%; 3.49% two-year variable rate – reduced from 3.59%; 3.99% five-year fixed rate – reduced from 4.19%.
All products have had their initial rates extended by three months – to 31st January 2023 for two-year deals and 31st January 2026 for five-year.
The new product banding and rate cuts follow on from last month’s introduction of 80% LTV versions of Foundation’s two and five-year fixed-rates for both existing borrowers and first-time buyers, plus a new 80% two-year variable discount with no ERC.
Jeff Knight, director of marketing at Foundation Home Loans, said: “The specialist residential market is undoubtedly changing and the likelihood is advisers will be seeing a significant growth in clients who, for many reasons, miss out on the mainstream or will have accumulated credit blips, perhaps as a result of the COVID-19 lockdown.
“Our products are for those with extra-ordinary circumstances, such as multiple income sources through to credit blips. These changes simplify our residential range, whilst building on our residential criteria improvements to include a far wider range of complex income types and sources, and we calculate interest-only affordability on an interest-only basis.
“These changes and pricing upgrades mean that Foundation has many competitive options for specialist residential borrowers and we would urge advisers to contact their regional account managers to discuss our offering with them.”