Specialist lender, Foundation Home Loans, has announced that it has made a number of rate reductions across its five-year fixed-rate range for landlords and introduced a new 65% LTV Green Reward Remortgage.
According to the lender, the changes will cover their 75% LTV five-year fix, now at 3.24% reduced by 10 basis points – which comes with a 2% fee and their ‘ERC-3’ product, now fixed for five years at 3.59% (10 basis points reduction) with early repayment charges for the first three years only. Other products will also benefit from the reduced rates.
Foundation has also cut the rate on its recently-launched five-year fix Green Reward Remortgage, down to 3.59% from 3.65% at 75% LTV and a maximum loan size of £1m, and introduced a new 65% LTV version of the product, available at 3.49%, allowing a larger maximum loan size of £1.5m.
Both come with £750 cashback on completion plus a reduced fee of 0.65% on the 65% LTV product and 0.75% on the 75% LTV product.
The Green Reward five-year fixed-rate mortgages for landlord borrowers are available on those private rental sector properties which have an Energy Performance Certificate (EPC) rating of ‘C’ or above – dated within the last 12 months, except for listed properties that are not eligible.
The five-year fixes are available to both individuals as well as limited company borrowers, and Foundation’s ICR is calculated using the pay rate on five-year fixes at only 125% for limited companies and basic rate taxpayers, and 145% for others. There is no limit on the background portfolio size of the borrower, subject to a maximum of £3m with Foundation.
“As always, our aim here is to support those landlord borrowers who just miss out on mainstream credit scores and to support our adviser partners as they seek to grow their buy-to-let advice businesses.”