Foundation Home Loans cuts residential rates by up to 0.5%

Foundation Home Loans has cut rates across a number of products within both its residential and buy-to-let ranges.

Related topics:  Mortgages
Rozi Jones
25th February 2021
George Gee Foundation
"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"

Foundation's 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 50bps on both its residential two and five-year fixed rate mortgages.

Two-year fixed rates have reduced to 289% at 65% LTV and 3.19% at 75% LTV, while five-year fixed rates now start from 3.39% at 65% LTV an 3.54% at 75% LTV. Products come with a £995 fee.

New fee-assisted residential remortgages include a two-year fix at 65% LTV which has reduced by 30bps to 3.19% and at 75% LTV by 50bps to 3.39%. Five-year rates at 65% LTV have reduced by 40bps to 3.59% and at 75% LTV by 50bps to 3.79%. These products come with a reduced £595 fee, no application fee, a free standard valuation and £250 cashback upon completion.

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, 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.

A two-year fixed rate now starts at 2.89% up to 65% LTV and a five-year fix has been reduced to 3.34% up to 75% LTV. Additionally, an 80% LTV two-year fixed-rate product now has a rate of 3.99%, down from 4.09%.

A five-year buy-to-let fixed rate for large loans over £500,000 with a 2.25% fee has been reduced by 10bps to 3.09% up to 65% LTV, and two and five-year remortgage specials with a 1% product fee have also been reduced, now starting from 3.29% at 65% LTV. These products come with incentives including no application fee, a free standard valuation and £250 cashback upon completion.

George Gee, 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.”

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