BTL rate cuts announced by Foundation and Paragon

Foundation Home Loans and Paragon Bank have both announced reductions in their buy to let mortgage rates.

The buy to let brand of the specialist lender, ‘Buy to Let by Foundation’, has lowered its rates by up to 30 basis points on a range of Fixed Rate Specials.

These revised rates are available in both F1 and F2 tiers, catering to clients with near-perfect credit histories.

Also, landlords financing more specialised property types are included.

Key products include:

• F1 Portfolio Landlord: Five-year fixed rates reduced by up to 0.30% with a 6% fee, starting from 4.89% up to 75% LTV
• F1 Portfolio Landlord Fee-Assisted: Five-year fixed rates reduced by up to 0.30% with a 5% fee, starting from 5.09% up to 75% LTV
• F1 Two-Year Fixed: Rates reduced by up to 0.25% with a 4% fee, starting from 4.49% up to 75% LTV
• F2 HMO: Two- and five-year fixed rates reduced by up to 0.30% with a 3% fee, starting from 4.99% up to 75% LTV
• F2 Multi-Unit Freehold Block (MUFB): Two- and five-year fixed rates reduced by up to 0.30% with a 3% fee, starting from 5.09% up to 75% LTV.

These reductions follow the recent launch of a Limited Edition F1 five-year fixed-rate product, offered up to 75% LTV with a rate of 5.94% and a 1% fee, including a free standard valuation and no application fee.

Cuts across a range of buy to let Specials

Foundation’s director of product and marketing, Tom Jacob, said: “As the market shifts, we are able to announce rate cuts across a range of buy to let Specials with reductions of up to 30 basis points available for portfolio landlords, HMO and MUFB borrowers, and a specific two-year, fixed-rate product cut, bringing the price down to 4.49% for 65% LTV with a 4% fee.

“Our range, pricing and criteria is tailored to an array of landlord borrowers and property types, and these Specials cover a wide variety of needs and circumstances, whether standard buy to let finance or more niche areas such as HMOs and MUFBs.”

Paragon refreshes its BTL mortgage range

Meanwhile, Paragon Bank has also refreshed its buy to let mortgage range, reducing rates on selected products by 50 basis points.

The updated rates apply to two-year and five-year fixed rate mortgages, with options for nil, 3%, and 5% fees, as well as a £3,995 fee product.

These products are available for purchase and remortgage at 65%, 70%, and 75% LTV.

Highlights include:

• 70% LTV Two-Year Fix: Rates from 3.64% for Single Self Contained (SSC) properties (EPC A-C), with a 5% initial fee and £299 application fee
• Limited Edition 65% LTV Five-Year Fix: Rates from 4.59% for SSC properties (EPC A-C), with a 5% initial fee and £150 application fee
• 75% LTV Five-Year Fix: Rates from 5.55% for SSC properties (EPC A-C), with a £3,995 fee, £299 application fee, and £750 cashback.

Reduced rates on BTL mortgages

Paragon says that rates increase by 5 basis points for properties with an EPC rating of D or E, and by 25 basis points for Houses in Multiple Occupation (HMO) and Multi-Unit Blocks (MUB).

These products are available for individual and limited company applications in England, Scotland and Wales.

The lender’s product manager, James Harrison, said: “The economic uncertainty surrounding the Budget has largely subsided, helping to bring swap rates down.

“Passing this on to our customers, we’ve reduced rates across a wide range of buy to let mortgages.

“The range refresh sees us offer competitive rates across different fee options and products available at 65%, 70% and 75% LTV.

“A selection of our products benefit from £750 cashback, with others offering a reduced application fee of £150.”

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