Foundation Home Loans has launched new short-term and holiday let products through its buy-to-let brand.
The lender has also cut fees on a selected number of its existing buy-to-let mortgages.
The new products include a two- and five-year fix for short-term let properties. Both are available up to 75% LTV with rates starting at 6.79% with a fee of 1.25%.
It has also launched a two-year fixed-rate holiday let mortgage. This has a rate of 6.99% and is available up to 70% LTV with a 2% fee.
As part of a wider repricing of its products, ‘Buy to Let by Foundation’ has reduced the fee for its F1 five-year fixed ERC3 mortgages from 1.75% to 1%. Its F1 range is for portfolio and non-portfolio landlords with an almost clean credit history, with this particular product only imposes early redemption charges in the first three years of the fixed-rate period.
The lender has also reduced fees from 1.5% to 1.25% on its F2 large portfolio two- and five-year fixed-rate products. This is for portfolio borrowing above £5m.
Meanwhile the fee on its F2 five-year large loans product – up to £5m for 60% LTV and up to £3m for 70% LTV – has been reduced from 2% to 1.5%.
Foundation said its special buy-to-let products, which cover purchase and remortgage options for both F1 portfolio and non-portfolio landlords, remain available and are not impacted by this product refresh.
These changes follow the launch of new buy-to-let ‘pound-for-pound’ (£4£) remortgage options last month.
Foundation Home Loans director of product and marketing Tom Jacob says the changes will help landlords looking to diversify portfolios, with both short-term and holiday lets growing in popularity, due to the potential for greater rental yield levels on these properties.
“At the same time, we have been able to cut fees across a number of products, saving money upfront for landlords and over the term of the mortgage, given that large numbers of borrowers add the fees to the loan.”
He adds: “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.”
