Intermediary only lender Foundation Home Loans has overhauled its buy-to-let mortgage range with new products and lower fees.

All two-year fixed-rate products have had their product fees halved to 1 per cent.

At the same time Foundation has reduced the fee on its buy-to-let five-year remortgage product to £2,495, a reduction of £500. It also comes with a free valuation, no application fee and £250 cashback. 

On its five-year fixed buy-to-let ‘ERC 3’ product, Foundation has cut the fee to 1 per cent.

The lender has also launched a new five-year fixed BTL mortgage, at 80 per cent loan-to-value, within its F1 tier, aimed at borrowers with a near-perfect credit record, at 4.24 per cent interest, with a flat product fee of £1,995.

For portfolio landlord borrowers requiring ‘low loans’ with a minimum loan size of £30k, rather than £50k, Foundation is offering other new products in its range.

End dates for all products have also changed, with two-year deals going up to the end of July 2022, and five-year deals going up to the end of July 2025.

According to the lender the new range is in response to an increase in demand for two-year rates.

It also gives more options to landlord borrowers, particularly those seeking finance within a limited company or who want to acquire or refinance more complex properties like HMOs, multi-unit blocks and short-term lets. 

The rate cuts follow on from Foundation’s decision to introduce a number of buy-to-let criteria enhancements earlier this year.

These include new interest cover ratios for basic-rate tax payers, cut from 145% of rental income to 125%, plus an increase in maximum loan sizes across its entire product range (including HMOs, multi-unit blocks and short-term lets) for both 65 per cent and 75 per cent LTV.

Director of Marketing at Foundation Home Loans Jeff Knight says: “There has undoubtedly been a shift towards adding to portfolios in recent months, particularly by portfolio and professional landlords.

“This new range recognises the specific needs of today’s landlord, whether they want to add lower-value properties or they want to access higher-yielding HMOs or multi-unit blocks.”