Foundation lowers rates and launches limited company and short-term rental products
Foundation Home Loans has lowered rates on its specialty buy-to-hire lines and also introduced new limited-company and short-term rental products.
The Limited Edition Limited Liability Company product is available up to 75 percent Loan to Value (LTV) and priced at 3.24 percent, 10 basis points below the basic liability company range. Foundation Limited.
It has a reduced fee of 1.5%, an Interest Coverage Rate (ICR) calculated at 125% of the pay rate and a maximum loan amount of £ 1million.
There is no maximum for the size of the background wallet, but a maximum of £ 3million is allowed with Foundation.
The new short-term rental products are a pair of variable two-year discount products at 65% and 75% LTV.
They benefit from discounts of 1.6 percent and 1.2 percent giving pay rates of 3.49 percent and 3.89 percent, respectively.
Foundation also cut rates on current short-term rental products, reducing its five-year fixed rate to 65% LTV to 3.99% from 4.19% and the LTV version to 75% to 4.29% against 4.79%.
Meanwhile, a series of rate cuts were also made on a number of its rental products.
Compared to its standard real estate F2 range for borrowers with bad credit, the two-year fixed rates at 65 and 75% LTV have been reduced by five basis points (bps) to 3.19% and 3.34. % respectively.
The five-year F2 versions have been reduced to 3.39% and 3.54% respectively.
F2 houses in multiple occupancy (HMO) fix five-year LTV at 65 and 75 percent down 10 basis points to 3.49 percent and 3.64 percent respectively.
All the offers mentioned have a two percent charge.
George Gee, business director of Foundation Home Loans, noted that the budget has resulted in increased activity, especially from homeowners.
“Owners continue to look for properties that can offer a high return – hence the emphasis on HMOs and short-term rentals,” he said.
“And as a lender active in these areas, we want to make sure that advisors and their clients have access to a highly competitive range, across the rental product space. “
Owain Thomas is Editor-in-Chief and Contributor of Mortgage Solutions and Editor-in-Chief of Specialist Lending Solutions. He also has experience in the areas of protection, pensions, benefits and human resources. Owain won two Headline Money Awards and the Protection Review Journalist of the Year award.