BTL mortgage lender launches short let products, and cuts some rates

Foundation Home Loans’ buy to let product range - Buy to Let by Foundation - has cut fees on some options and has launched new short-term and holiday let products.

The specialist lender has introduced a two-year and a five-year fixed rate for short-term lets. These are available up to 75% loan-to-value (LTV) starting at 6.79% with a 1.25% fee.

A new holiday let product is a two-year fixed rate at 6.99% up to 70% LTV with a 2% fee.

Buy to Let by Foundation has reduced fees for its F1 – aimed at portfolio and non-portfolio landlords with a nearly clean credit history – from 1.75% to 1% on its five-year fixed early repayment charge (ERC3) product, with charges only for the first three years.

Fees for the F2 Large Portfolio two- and five-year fixed-rate products are down from 1.5% to 1.25%. These also offer a free valuation and no application fee.

For larger loans, fees on the F2 five-year product for loans up to £5m at 60% LTV and up to £3m for 70% LTV are down from 2% to 1.5%.

Tom Jacob, director of product and marketing at Foundation Home Loans, says: “Landlords continue to look at the ways and means by which they can diversify their portfolios 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.

“… 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.”

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