‘Buy to Let by Foundation’ launches new short-term and holiday let products, and cuts fees across its product range
10 May 2024
‘Buy to Let by Foundation’, the buy-to-let brand of Foundation Home Loans, the intermediary-only specialist lender, has today launched new short-term and holiday let products, as well as cutting fees across a range of buy-to-let products.
The lender has launched fee-assisted, two- and five-year fixed-rate products for short-term let properties, available up to 75% LTV with rates starting at 6.79% and a fee of 1.25%.
It has also launched a new two-year, fixed-rate, holiday let product, available up to 70% LTV, with a 2% fee and a rate of 6.99%.
In addition to these new products, as part of a wider reprice, ‘Buy to Let by Foundation’ has also cut the fee from 1.75% to 1% on its F1 – for portfolio and non-portfolio landlords with an almost clean credit history – five-year fixed ERC3 product, which only has early repayment charges for the first three years of the five-year fixed-rate period.
It has also cut fees from 1.5% to 1.25% on its F2 Large Portfolio two- and five-year fixed-rate products – for portfolio borrowing above £5m - the products also come with a free valuation and no application fee. The fee on its F2 five-year Large Loans product – up to £5m for 60% LTV and up to £3m for 70% LTV – has been reduced from 2% to 1.5%.
Foundation said its Special buy-to-let products, which cover purchase and remortgage options for both F1 portfolio and non-portfolio landlords, remain available and are not impacted by this product refresh.
These new products and fee changes follow the launch of new buy-to-let ‘pound-for-pound’ (£4£) remortgage options last month by ‘Buy to Let by Foundation’ available up to 75% LTV for individuals and limited company borrowers. The minimum loan size is £50k and the maximum loan size is £1.5m.
Foundation’s current service levels continue to average turnaround times of one day for DIP referral, application and underwriter review for all cases.
Tom Jacob, Director of Product and Marketing at Foundation Home Loans, said:
“We continue to review our product and criteria right across the buy-to-let range, and as a result of this, we’re able to launch these new, specific short-term and holiday let products, as well as cut fees across a number of other product options. Landlords continue to look at the ways and means by which they can diversify their portfolio, and both short-term and holiday let options are growing in popularity, not least because of the potential for greater rental yield levels on these types of properties.
“At the same time, we have been able to cut fees across a number of products, saving money upfront for landlords and over the term of the mortgage, given that large numbers of borrowers add the fees to the loan. Foundation will continue to closely monitor the market and our proposition to ensure we have a broad array of product options for those landlords who are looking to purchase or remortgage more specialist property types.”
For more information on Foundation Home Loans, please visit: www.foundationforintermediaries.co.uk
