Foundation Home Loans has announced rate cuts across its range of buy-to-let mortgages, alongside tweaks to some residential mortgage rates, to bolster its product offerings for a wider range of borrowers.

Foundation Home Loans, a firm that deals exclusively with intermediaries, has launched a revamped array of mortgage products, notably slashing rates for both portfolio and non-portfolio landlords. One of the standout new features is the introduction of a 4.99% five-year fixed-rate mortgage specifically tailored for portfolio landlords. This rate change marks a strategic enhancement in their ‘Buy to Let by Foundation’ brand.

The lender has reduced the interest rates on its F1 product line by up to 50 basis points (bps). These products are designed for landlords with nearly impeccable credit histories, with new starting rates for five-year fixed mortgages now at 5.74%. Additionally, the F2 product range, which caters to landlords with past credit issues, has seen cuts of up to 45bps, bringing the starting rate for standard five-year fixed mortgages down to 5.94%.

Specials Range Adjustments

For landlords focusing on building or managing larger portfolios, the lender has reintroduced a special five-year fixed-rate mortgage exclusively for them. These loans come with loan-to-value ratios up to 75% and start at a rate of 4.99%, although they carry a higher fee of 6%. Foundation Home Loans has also trimmed 15bps off its two-year fixed rates in the F1 standard special range, with starting rates now at 5.34%.

Residential Mortgage Rate Cuts

Changes are not solely confined to the buy-to-let market. The ‘Residential by Foundation’ brand has also seen modest cuts. The F1 and F2 special fee-assisted two- and five-year fixed-rate mortgages have had 10bps shaved off, with new rates beginning at 6.44%.

Strategic Importance of the New Rates

Tom Jacob, Director of Product and Marketing at Foundation Home Loans, highlighted the significance of these changes in the current economic landscape. He emphasised that these reduced rates are intended to assist advisers in catering to clients who find themselves slightly outside the mainstream market or those with minor credit history issues. The revised rates aim to enhance affordability, enabling borrowers to meet the stringent loan requirements more comfortably.