Foundation Home Loans has cut rates on its core residential range by up to 50bps, and introduced new LTV bands and green mortgage options as part of a wider product refresh.
The larges reductions are on the specialist lender’s core F1 and F2 range. The former is for borrowers with more minor credit problems, while the latter covers those with more recent credit issues.
On Foundation’s F1 products rates start at 5.65% (at 85% LTV) for its two-year and five-year fixes. This is a 50bps reduction.
It has also reduced rates by 50ps on its two- and five-year JBSP products. These are available on both its F1 and F2 range. Rates start at 5.85% (at 85% LTV) with a £795 fee.
Foundation is also offering new F1 and F2 products at 65% LTV. This includes two and five-year fixed rate options, with rates starting from 5.54%, with a £995 fee.
It is also offering new green products, again on a two and five-year fixed rate term. These are available to F1 borrowers. Rates start at 5.59% (up to 85% LTV) with a £595 fee.
The lender has also made cuts to its professionals, key workers and EPC Saver products. There are also reductions to its F3 range – for clients who have experienced credit problems in the last 12 months – and F4 range, for clients with no significant adverse during the last six months. Rates on these two- and five-year fixed rate products start at 5.94%, up to 75% LTV.
Foundation Home Loans director of product and marketing Tom Jacob says: “The recent cut to Bank Base Rate and some notable dips in swap rates have paved the way for some sizeable shifts in pricing and we’re pleased to be able to announce these significant cuts to our core residential range today, as well as the reintroduction, and launch, of products for specialist residential borrowers.”
He adds: “This is a full product reprice across our full range of borrower tiers, with cuts right across the board, as well as a number of new products, that are designed to provide further options to all borrowers in all product niches.
“As we know, advisers are seeing a growing number of borrowers who are currently outside the residential mainstream and with our ‘Residential by Foundation’ brand we’re able to ensure they get the property finance they need.”
