The special products include F1 two-year fixed rates with pricing starting at 5.39 per cent, a one per cent fee and one free standard valuation. The F1 range is for clients with an almost clean credit history.
The F2 two-year fixed rate begins from 5.49 per cent with a one per cent fee and the F2 houses in multiple occupation two-year fixed rate starts at 5.54 per cent with a one per cent fee.
The F2 range is for clients financing a more specialist property type and/or those with some historical blips on their credit rating.
The lender said that the products support the introduction of its simplified ICR stress tests for short-term products beneath a five-year fixed rate including fixed and discounts. This will be based on the higher of either the pay rate plus two per cent or a flat eight per cent.
George Gee (pictured), managing director for commercial at Foundation Home Loans, said that the overall outlook for the base rate over the next two or five years was “improved”, so it was “committed to offering advisers a range of shorter-term options for their landlord clients”.
He added that the improved ICR stress test for shorter term rates would support those looking for shorter term products.
“The launch of these new products in the two-year fixed-rate space for landlords, utilising the new stress test calculation, should open up new maximum loans for a number of borrowers wanting shorter term products.
“The products all come with a one per cent fee, while the F1 offering also has a free valuation, with all of them competitively priced,” Gee noted.
He continued that it expected there to be “significant opportunities” in the coming weeks to look at its existing buy-to-let product offering and to reflect some of the shifts we are seeing in the market, and our own appetite to lend in this product sector”.
“That will be further good news for advisers and their landlord clients and we would urge advisers to contact us to see how we can support them in writing more business in this area,” Gee said.
