The highlights included a two-year fixed rate, at 75 per cent LTV, reduced to 2.69 per cent from 3.05 per cent. The product is available to individuals and limited companies.
The two-year fix at 75 per cent LTV for homes in multiple occupancy (HMOs) was cut to 2.89 per cent, down from 3.34 per cent. Again it’s available to individuals and limited companies.
The two-year fixed rate on products covering HMOs with more than eight bedrooms, or multi-unit blocks (MUBs) of more than 10 units, was cut to 2.99 per cent.
All the lender’s two-year products attract fees of 2 per cent, early repayment charges of 2 per cent or 3 per cent and have end-terms of 31 January 2022.
“To be able to cut prices by up to 45 basis points is significant. It gives greater choice for landlords, especially HMO clients as the interest cover ratio is highly competitive in this market at only 145 per cent at 5.5 per cent,” said Jeff Knight, director of market at Foundation Home Loans.
“We’ve seen growing appetite for two-year products in recent months from landlords looking for rate security alongside freedom to be flexible after 2022,” he added.