Foundation Home Loans relaunches short-term let products

The specialist lender has also made rate reductions of up to 40 basis points across its five-year BTL products — for individuals and limited company borrowers — with rates now available from 3.29%.

Advisers will be able to access:

• large loan mortgage five-year fixed-rate of 3.29% for F1 borrowers at 65% LTV
• early remortgage five-year fixed-rate of 3.65% for F1 borrowers with a maximum LTV of 75% 
• short-term let mortgages for both two- (3.99%) and five-year (4.64%) fixed-rates, available for F1 borrowers up to a maximum LTV of 75%. 

These changes are in addition to last month’s new products, which included a five-year, fixed-fee offering for F1 borrowers.

Those rates have also seen reductions and are now offered at 3.74% up to 65% LTV, or 3.99% up to 75% LTV with a fixed £1,995 fee.

The lender reintroduced a 125% ICR for limited company borrowers and basic-rate taxpayers. 

First-time landlords are also being offered products again.

“It’s fair to say that the BTL market is in a different place to where it was at the start of the year,” said Jeff Knight, director of marketing at Foundation Home Loans (pictured above).

“We’ve seen a strong demand from intermediaries who say there are many landlords who want to make the most of the opportunity, refinancing [to] fund future purchases, and looking at diversification of their portfolios. 

“…We are particularly pleased to be back in the short-term let space as we believe there will be a growing demand to utilise these properties, particularly in the holiday sector.

“Our sales team are available to support all advisers and help them place these cases, we have a strong appetite to lend and we are very positive about the BTL market throughout the rest of 2020 and beyond.”