Foundation Home Loans and The Mortgage Lender reduce BTL rates

Foundation Home Loans has unveiled a new limited-edition HMO product and reduced rates across its ‘Buy to Let’ and ‘Solutions by Foundation ranges, while The Mortgage Lender has also reduced its BTL offering.

Foundation’s ‘Buy to Let’ brand has introduced a new five-year fixed-rate HMO product available up to 75% Loan-to-Value (LTV) at 5.74% with a £4,995 fee.

This product requires a minimum loan of £200,000.

The lender has also lowered rates on other specialist property products by 25 basis points (bps) for five-year HMO fixes, starting from 6.14% up to 75% LTV, and 15 bps for five-year short-term let fixes, starting at 6.44% up to 75% LTV.

‘Solutions by Foundation’ has also reduced rates by 10-15 bps. Large HMO and HMO Plus rates, available with a 2% fee, have dropped 10 bps to 6.49% and 6.34% respectively, up to 75% LTV.

Multi-unit freehold block rates have been cut by 20 bps to 6.24% with a 2% fee, up to 75% LTV.

Equivalent expat products have seen reductions of up to 15 bps and are available with a 2% fee, starting at 6.64% up to 75% LTV.

Buy to let mortgages

Foundation’s director of product and marketing, Tom Jacob, said: “Whether it’s our core BTL or Solutions range of products, we continue to both add to our offering and introduce price cuts across the whole sphere of buy to let mortgages Foundation offers.

“We’re able to launch a limited edition HMO product within the ‘Buy to Let by Foundation’ range, plus a series of price reductions for a number of F2 products, while within our more specialist ‘Solutions’ range we can offer significant price cuts for expat borrowers, and those purchasing or refinancing both HMOs and multi-unit freehold blocks.”

He adds: “Landlords continue to seek higher rental yield and are increasingly drawn to higher-yielding properties like HMOs and MUFBs, so it’s not surprising we are seeing a growing interest in this part of the market.

“With these cuts landlord borrowers should find an easing of affordability, allowing them to either add to portfolios or refinance existing properties, by securing the loans they require.”

TML has announced rate reductions

Meanwhile, The Mortgage Lender (TML) has announced rate reductions across its five-year fixed 75% LTV buy to let products.

Its BTL core range and portfolio multi-loan products have seen a 0.20% rate cut.

The five-year fixed 75% LTV product with a 5% fee has dropped from 5.26% to 5.06%, while the portfolio multi loan has moved from 5.92% to 5.72% for the five-year fixed 75% LTV product with a 2% fee.

The 75% LTV product with a £2,495 fee has also reduced from 6.06% to 5.86%.

Steve Griffiths, TML’s chief commercial officer, said: “We remain committed to our broker partners and our customers in offering attractive rates to borrowers, whether purchasing or remortgaging.

“We continually evaluate our rates to support new and existing landlords, and to help brokers and their clients’ in achieving their property ambitions.”

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