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Foundation, Keystone and Kent Reliance cut rates – round-up

  • 17/11/2023
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Foundation, Keystone and Kent Reliance cut rates – round-up
Foundation Home Loans has reduced rates across its owne- occupied and buy-to-let product ranges.

Its core buy-to-let rates have fallen by up to 0.3 per cent, including its range for F1 borrowers with an almost clean credit history where a green five-year fix has been cut to 6.29 per cent. This has a 1.25 per cent fee, no application fee and offers a free valuation. 

Within its owner-occupied offering, green two and five-year fixes for F1 borrowers have been cut by up to 0.45 per cent and start from 6.74 per cent.  

The lender has also reduced rates across remortgage, professional and key worker mortgages by up to 0.45 per cent. 

Tom Jacob, director of product and marketing at Foundation Home Loans, said: “Over the past couple of weeks, we have focused on refreshing both our buy-to-let and owner-occupier specials products, and now we are able to announce a full review of our core ranges, making rate cuts of up to 30 basis points for buy-to-let and up to 45 basis points for owner-occupier borrowers. 

“We continue to support those landlord borrowers and residential purchasers/remortgagors who have properties with an EPC level above C, as it is clearly beneficial to have housing stock which is as energy-efficient as possible, particularly after a period when household energy bills have been so high. We remain focused on providing these green options and they remain a key part of both our buy-to-let and owner-occupied ranges.  

“Overall, this is a positive range of rate cuts across a wide array of products, and we believe these will offer advisers with specialist clients access to the finance they need, at a reduced price.” 


Keystone Property Finance reduces pricing 

Keystone Property Finance has cut its buy-to-let rates by up to 0.2 per cent, with pricing in its standard range now starting from 4.64 per cent for a two-year fix and 5.14 per cent for a five-year fix. 

It has also reduced rates across its two-year product transfer and standard switch and fixed rates by 0.15 per cent, as well as all its five-year fixes for specialist, switch and fix, ex-pat and holiday let by 0.05 per cent. 

Following the cuts, Keystone’s product transfers now start from 6.09 per cent, while its ex-pat and holiday let ranges start from 6.19 per cent.   

Elise Coole, managing director, at Keystone Property Finance, said: “We hope that the series of rate cuts that we have made in quick succession gives confidence to the market. 

“As we have pointed out previously, downward movement in rates isn’t always dependent on changes to bank rate. We take a flexible approach to pricing and will always endeavour to pass savings on to brokers and their clients whenever we can.   

“In this case, we have been able to apply reductions right across our range giving all customers more competitive lending options.” 


Kent Reliance lowers BTL rates  

Kent Reliance has reduced its buy-to-let rates, with reductions of up to 0.3 per cent across its core range at 75 per cent loan to value (LTV). 

It has also added a limited edition option at 70 per cent LTV, with rates starting from 4.59 per cent. 

Additionally, the lender has updated its HMO policy to allow up to 20 beds instead of 10. 

For HMO applications against properties with up to six beds, the interest coverage ratio (ICR) will be based on 125 per cent for limited companies and 140 per cent for individual borrowers. 

On larger HMOs with up to 20 beds, ICR will be calculated on 145 per cent for limited company and 175 per cent for personal ownership. 

Adrian Moloney, group intermediary director at Kent Reliance for Intermediaries, said: “We know from recent research carried out by BVA BDRC, that the average rental yield for HMOs are a full percentage point higher than the overall average rental yield; 6.3 per cent for HMOs compared to an overall average yield of 5.3 per cent so this is an attractive offering for experienced landlords looking to maximise their rental yields.” 

He added: “This move also reflects the increasing professionalisation of the market where we are seeing seasoned property investors actively seeking to increase their portfolios against a backdrop of strong tenant demand with affordability challenges. 

“From a tenant prospective, this is where HMOs come into their own as they are often a more affordable renting option as sharing quality accommodation with others can be cheaper than renting alone, you have the company of others should you want it but at the same time you have your own personal and private space. We’re seeing a number of good quality applications with high specifications coming through that reflect this growing trend.” 

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