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Foundation Home Loans increases LTVs and reduces rates

Foundation Home Loans has made a range of changes to its buy-to-let product range, which includes increases to loan-to-value (LTV) bands, rate reductions and the introduction of a new five-year fixed fee product.

Two-year rates now start at 2.94% and five-year deals from 3.54%, while Foundation Home Loans has increased its LTVs to 75%, including HMOs and Multi Unit Blocks.

The lender has also launched a new five-year fixed fee product for F1 borrowers, aimed at borrowers looking for larger loans. The product is offered at 3.84% up to 65% LTV or 4.29% up to 75% LTV and comes with a fixed fee of £1,995.


In addition, Foundation Home Loans has introduced a number of criteria changes across the buy-to-let range, including the reintroduction of a 125% ICR for limited company borrowers and basic-rate taxpayers, while it is also offering products for first-time landlords. 

Jeff Knight, director of marketing at Foundation Home Loans, commented: “Since returning to new lending last month, we’ve seen a growing interest from advisers and landlords as they seek to both refinance and add to their portfolios.

“As the market continues to change, we have taken the decision to enhance our product offering, broaden our criteria and introduce new products which we believe provide a greater degree of flexibility for landlords whose circumstances may well change over the next 12 months. Our variable rate products have no ERCs attached and mean that landlords will be able to remortgage with no additional costs in the future.

“Also, our new ‘fixed fee’ product cuts down on the overall and upfront costs for landlords and may be particularly applicable for those landlords seeking larger loans. We’re also very pleased to be able to introduce our 125% ICR level for limited company borrowers, plus those who are basic-rate taxpayers.

“Overall these product and criteria changes represent the next step forward for Foundation in the buy-to-let space, and we would urge advisers to speak to their regional sales contact.”

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