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Foundation restarts lending with residential and buy-to-let products

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  • 14/05/2020
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Foundation restarts lending with residential and buy-to-let products
Foundation is returning to new mortgage lending on 18 May as valuers return to completing in-person inspections.

 

The lender is launching a new set of products in its buy-to-let and residential ranges, with loan to values (LTVs) of up to 75 per cent.

Foundation paused new lending in March as valuations could not be conducted, but said it had since been completing pipeline cases, with £37m lent in April.

“All cases remaining in the pipeline which have not received a mortgage offer have now been offered the option to switch to one of the new products, as the previously selected ones are no longer valid,” the lender told Specialist Lending Solutions.

 

Fixed-rate and discount products

The new buy-to-let deals are suitable for individuals and limited companies, include houses in multiple occupation (HMO) and are available as fixed-rate and discount products.

It has a standardised interest cover rate (ICR) of 145 per cent at either 5.5 per cent or pay rate, comes with a two per cent fee, and reverts to Bank Base Rate plus 4.99 per cent at the end of the deal term.

The fixed-rate products are available on the F1, F2 and F3 ranges.

Discount products, which have no early repayment charges (ERCs), are available for F1 and F2 borrowers with rates starting at 2.94 per cent for F1 borrowers at 60 per cent LTV.

The residential range offers two-year fixed and variable-rate products for F1, F2 and F3 borrowers.

 

Formal launch next week

Foundation Home Loans director of marketing Jeff Knight said: “Since lockdown was brought in, we have continued to lend by processing our existing pipeline, completing in the region of £37m of lending in April alone.

“However, once lockdown began, we took the strategic decision to only allow new applications once we knew it would be possible to instruct physical valuations again.

“Therefore, given announcements made this week, it is really pleasing to say that we can now offer our products to new applicants once again and will formally launch our full range on Monday.”

 

 

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