Foundation cuts rates across five-year BTL range and introduces new green remortgage product

Foundation Home Loans has made a number of rate reductions across its five-year fixed-rate mortgage range for landlords.

Its five-year 75% LTV product is now available at 3.24%, which comes with a 2% fee, while the five-year ERC-3 product rate has been lowered to 3.59%, with ERCs for the first three years only.

The rate for Foundation’s five-year fixed-rate 65% LTV offering has been cut to 3.14% with a 2% fee, while the larger five-year option — with a maximum loan of £2m — at 65% LTV is now at 2.99% with a 2.25% fee.

The lender has also slashed the rate on its five-year early remortgage 75% LTV product to 3.39%, which also comes with a 2% fee.

The five-year fixes are available to individuals and limited company borrowers, with no limit on the background portfolio size and subject to a maximum £3m with Foundation.

The finance provider’s ICR is calculated using the pay rate on five-year fixes at only 125% for limited companies and basic rate taxpayers, and 145% for others.

In addition, Foundation has cut the rate on its recently launched five-year 75% LTV green reward remortgage to 3.59%, as well as introduced a new 65% LTV version of the product, available at 3.49%.

The 75% LTV and 65% LTV green offerings provide a maximum loan size of £1m and £1.5m respectively.

The green reward five-year fixed-rate mortgages for landlord borrowers are available on PRS properties that have an EPC rating of ‘C’ or above, dated within the last 12 months — except for listed properties which are not eligible.

George Gee, commercial director at Foundation, said: “These rate cuts to some of our most popular five-year fixes are designed to support advisers and their landlord clients, particularly if they are looking for a more generous loan amount.

“The cuts of 10 basis points make these even more competitive and will enhance our core range, supporting those landlords looking to add to their portfolios or remortgage to an excellent rate.

“As always, our aim here is to support those landlord borrowers who just miss out on mainstream credit scores and our adviser partners as they seek to grow their BTL advice businesses.”

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