"Our two-year discount products with no ERCs and the ERC3 product, which offers a five-year fixed rate but only a three-year tie-in, deliver the kind of adaptable finance structure that landlords need right now"
- Tom Jacob - Foundation Home Loans
Intermediary-only specialist lender, Foundation Home Loans, has announced that it has introduced a series of rate reductions and new products across its buy-to-let range to offer landlords greater flexibility and choice.
The changes follow the Bank of England’s decision to hold the Bank Base Rate (BBR) at 4% last week and come ahead of the Autumn Budget. The lender has launched new two-year discount products across its most popular ranges while cutting rates on existing ERC3 and discount options.
The ERC3 product is a five-year fixed-rate mortgage featuring early repayment charges for only three of the five years. This structure provides the stability of a five-year term while allowing borrowers to adjust their mortgage after the third year if needed.
According to Foundation Home Loans, the refreshed range is designed to give landlords more control in a changing market. The new two-year discounts carry no early repayment charges and are linked to BBR, enabling borrowers to adapt their financing as market conditions or personal circumstances evolve.
Product updates include:
F1 range – for clients with near-clean credit histories: five-year fixed rate ERC3 product reduced by 0.10%, now 5.54%, with a 1% fee and available up to 75% LTV.
F1 two-year discount – rate reduced by 0.05% to 5.94%, with a 1.5% fee, up to 75% LTV, and no ERCs.
New F2 range – for clients with some historical credit blips: two-year discount at 5.99%, with a 1.5% fee, up to 75% LTV, and no ERCs.
New F2 two-year discounts for specialist properties: 6.09% for HMOs (up to six occupants) and 6.19% for multi-unit freehold blocks (MUFBs), both with a 1.5% fee, up to 75% LTV, and no ERCs.
“Landlords continue to balance opportunity with requirements for ongoing flexibility when it comes to their mortgage finance requirements,” said Tom Jacob, director of product at Foundation Home Loans. “That need for both certainty and flexibility remains one of the key priorities we hear from our broker partners in terms of what they can offer landlord borrowers.
“That being the case, these price cuts and the launch of new products are designed to deliver just that. Our two-year discount products with no ERCs and the ERC3 product, which offers a five-year fixed rate but only a three-year tie-in, deliver the kind of adaptable finance structure that landlords need right now."
“We believe these changes position Foundation Home Loans strongly in an evolving buy to let market and reinforce our commitment to providing products that help landlords plan with confidence while keeping their future options open.”
