Foundation cuts rates and launches limited company and short-term let products

The limited edition limited company product is available up to 75 per cent loan to value (LTV) and priced at 3.24 per cent, 10 basis points below Foundation’s core limited company range.

It has a reduced 1.5 per cent fee, an interest coverage ratio (ICR) calculated at 125 per cent of pay rate and a maximum loan amount of £1m.

There is no maximum to the background portfolio size, but a maximum of £3m is allowed with Foundation.

The new short-term let products are a pair of two-year discount variable products at 65 per cent and 75 per cent LTV.

They have discounts of 1.6 per cent and 1.2 per cent giving respective pay rates of 3.49 per cent and 3.89 per cent.

Foundation has also cut rates on current short-term let products, reducing its five-year fix at 65 per cent LTV to 3.99 per cent from 4.19 per cent and the 75 per cent LTV version to 4.29 per cent from 4.79 per cent.

Rate cuts

Meanwhile, a series of rate cuts has also been made across a number of its buy-to-let products.

From its standard property F2 range for borrowers with some credit blips, the two-year fixes at 65 and 75 per cent LTV have been reduced by five basis points (bps) to 3.19 per cent and 3.34 per cent respectively.

The five-year F2 versions have been trimmed to 3.39 per cent and 3.54 per cent respectively.

The F2 houses in multiple occupation (HMO) five-year fix at 65 and 75 per cent LTV down 10bps to 3.49 per cent and 3.64 per cent respectively.

All the deals mentioned have a two per cent fee.

George Gee, commercial director at Foundation Home Loans, noted the Budget had resulted in increased activity, particularly from landlords.

“Landlords continue to seek out properties that can deliver strong yield – hence the focus on HMO and short-term lets,” he said.

“And as a lender active in these areas we want to ensure advisers and their clients have access to a highly competitive range, right across the buy-to-let product space.”