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Rate cuts unveiled by Foundation Home Loans and Family Building Society – round-up
The residential brand of intermediary specialist lender Foundation Home Loans has cut prices by 50bps and reintroduced some loan-to-value (LTV) deals.
As well as the price cuts, Residential by Foundation has reintroduced some products at 65% LTV, along with some new green mortgage options.
The cuts apply on products – so-called F1 – for borrowers who miss out on mainstream lending products due to historical blips.
The cuts are also being introduced on so-called F2 products, which are for borrowers who have recent credit blips.
They include new F1 and F2 two- and five-year fixed rate products for those with a 35% deposit. These come with a £995 fee, and rates now start from 5.54%.
And there are new F1 two- and five-year fixed green products up to 85% LTV with a £595 fee and free valuation, which start from 5.59%.
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Meanwhile, F1 two- and five-year fixed rate deals are being reduced by up to 0.5% with a £995 fee. It means rates on these products now start from 5.64% up to 85% LTV.
And finally, F1 and F2 two- and five-year fixed rate joint borrower sole proprietor (JBSP) products are being reduced by up to 0.5% with a £795 fee.
It means rates now start from 5.84% up to 85% LTV on these products.
Family Building Society also cuts rates
Family Building Society has announced that it is cutting rates by up to 0.25% across some of its two- and five-year fixed-rate deals, including on deals for older borrowers.
The cuts apply to deals for homeowners who live in their properties, as well as landlords who are buying via – or without – a corporate structure.
The society has cut its five-year retirement interest-only (RIO) product, which now stands at 5.54%.
It said the cuts would be “particularly welcome” for older borrowers who are struggling to remortgage due to their age.
Other reductions include on its repayment products, with a two-year fixed rate now starting from 5.19% and a five-year fixed rate starting from 4.74%.
Meanwhile, a two-year fixed rate now starts from 5.69% and the five-year version starts from 5.24%.
Darren Deacon, head of intermediary sales at Family Building Society, said: “We’re very pleased to offer these rate reductions across a wide range of products.
“They will be particularly welcome, I’m sure, for those under-served older borrowers struggling to remortgage simply because of their age and who need a lender willing and able to spend the time understanding their needs.
“In addition, our commitment to the buy-to-let [BTL] market is reflected in the removal of the product fee for our five-year UK landlord product, in addition to rate reductions across our buy-to-let range.”
The reductions in its BTL range include a two-year fixed rate deal now available from 4.55% and a five-year fixed rate version from 4.89% with no product fee.
For those investors with a limited company, there are BTL products now available from 4.99% for a five-year fixed rate and 5.44% for a two-year fixed rate.
For expats, a two-year fixed rate is now available from 5.64%.
The building society marked its 10th year of business last month, having been established on 14 July 2014.
Since then, it has more than doubled the amount lent to families and other borrowers to get them onto the property ladder.
However, at the time of marking the anniversary, the society’s chief executive Mark Bogard admitted that its “biggest opportunity is that lots of people still haven’t heard of us”.