Foundation Home Loans has slashed mortgage rates by up to 0.5%, offering a lifeline to first-time buyers and those with a history of credit problems.

The specialist lender has reduced rates across its range of fixed-rate mortgages, including deals for:

• First-time buyers
• Borrowers with small or old credit blips
• Borrowers with recent credit issues
• Joint borrowers with bad credit
• Energy-efficient homes

Big Savings for First-Time Buyers and Those with Past Credit Issues

The biggest savings are on Foundation’s F1 and F2 mortgages. F1 is for those with minor credit problems in the past, while F2 is designed for those with more recent credit issues.

Rates for both F1 and F2 mortgages now start at a competitive 5.65% for a two- or five-year fix at 85% loan-to-value (LTV). This is a significant 0.5% reduction.

Joint Borrower Rates Slashed

Foundation has also cut rates on its joint borrower sole proprietor (JBSP) mortgages by 0.5% for both F1 and F2 borrowers. Rates for these deals now start at 5.85% for a two- or five-year fix at 85% LTV.

New 65% LTV Products Launched

In a move that will be welcomed by those with smaller deposits, Foundation has launched new F1 and F2 products at 65% LTV. These two- and five-year fixed-rate mortgages have rates starting from 5.54%.

Green Mortgages Now Available

For environmentally conscious borrowers, Foundation has introduced new green mortgages for F1 borrowers. These mortgages offer a discounted rate of 5.59% for a two- or five-year fix at up to 85% LTV.

Help for Other Borrowers

The lender has also reduced rates on its:

• Professionals mortgages
• Key worker mortgages
• EPC Saver mortgages
• F3 mortgages (for borrowers with credit problems in the last 12 months)
• F4 mortgages (for borrowers with no significant adverse credit in the last six months)

Rates on these two- and five-year fixed-rate deals start at 5.94% at up to 75% LTV.

Tom Jacob, Director of Product and Marketing at Foundation Home Loans, said: “The recent cut to Bank Base Rate and some notable dips in swap rates have paved the way for some sizeable shifts in pricing and we’re pleased to be able to announce these significant cuts to our core residential range today, as well as the reintroduction, and launch, of products for specialist residential borrowers.”

“As we know, advisers are seeing a growing number of borrowers who are currently outside the residential mainstream and with our ‘Residential by Foundation’ brand we’re able to ensure they get the property finance they need.”