Foundation cuts rates across buy-to-let range

The specialist lender reduced its rates by up to 0.8%, bringing its Light Adverse five-year fixed product down to 4.39%.

Its administration fee will from now on be set at 2% of the loan amount, regardless of loan size.

Foundation said it wanted to encourage BTL landlords to keep investing following a slump in new business caused by the Stamp Duty changes earlier in the year.

Business development director Paul Brett said: “Our partners are telling us that they expect a positive core of BTL enquiries running into the end of the year, even though there has been a dip in activity in the wake of the loss of stamp duty. It is important that at FHL we are always looking at ways to provide the most cost effective funding to ensure that there is encouragement for landlords to continue investing.”

The government introduced a 3% Stamp Duty hike on second homes in April and revealed it was planning further cuts to landlord tax relief from next year.

Rival BTL lenders also adjusted their rates in response to the changes. For instance, earlier in September, specialist lender Together reduced the rates of its buy-to-let light plan product by 0.65% with rates now starting at 7.15%.

Dudley Building Society had previously launched a new version of its BTL range including new products, rate reductions and criteria changes. The firm’s reduced rates start at 2.99% while fixed rates were reduced by 0.30%.

Foundation had also cut the rates on its light adverse range for limited company-held buy to lets in June, which brought the products in line with pricing for individual landlords.

The firm reported a busy summer following the launch of its online portal, TED (Technology Enhanced Decisioning), which lets introducers complete online decision-in-principles and submit applications directly to the lender.

In September Foundation appointed Joanna Elton as regional account manager responsible for developing broker relationships in the north of England.