Foundation Home loans has cuts rates on selected products across its residential and buy-to-let ranges by up to 50 basis points

In its residential range it is reducing the cost of a number of two-year and five-year fixes. At 65 per cent LTV the residential two-year fix will now charges a rate of 2.89 per cent (previously 2.99 per cent). 

At 75 per cent LTV, Foundation will now charge 3.19 per cent, down from 3.29 per cent.) 

On its five-year fixes it will charge 3.39 per cent (at 65 per cent LTV) and 3.54 per cent (75 per cent LTV). Previously these fixes were prices at 3.49 per cent and 3.69 per cent respectively. 

All these products come with a £995 fee. 

Foundation has also adjusted the prices of its fee-assisted residential remortgages.Its two year fix at 65 per cent LTV will now charge 3.19 per cent (from 3.49 per cent). At 75 per cent LTV the rate has fallen from 3.89 per cent to 3.39 per cent.

There have also been reductions to the five year fixes. At 65 per cent LTV rates have been cut from  3.99 per cent to 3.59 per cent, while at 75 per cent LTV they will fall from 4.29 per cent to 3.79 per cent. 

These products have a £599 fee, no application fee and a £250 cashback offer on completion. 

Foundation Home Loans says it residential range is designed to meet the needs of borrowers with complex income or employment such as the recently self-employed. It will also consider a wide range of income types, including 100 per cent of bonus, overtime and/or commission, retirement and investment incomes.

Foundation Home Loans has also adjusted rates on its two- and five-year fixed rate BTL mortgages. Its two-year fixed rates now starts at 2.89 per cent up to 65% LTV. At 80 per cent LTV Foundation Home Loans is now offering a sub-4 per cent rate of 3.99 per cent (down from 4.09 per cent).

Its five-year fixed rate has been reduced from 3.44 per cent to 3.34 per cent (at 75 per cent LTV). 

There have also been reductions to its five-year fixed rate for large loans over £500,000 and its BTL remortgage deals. These have seen a rate cut and a reduction to the product fee. 

Foundation Home Loans says these the products are designed to support landlords looking for a more generous loan for their rent, as ICR is calculated using the pay-rate on five-year fixes, or the notional rate of 5.5 per cent for shorter rates, and stress-tested at 125 per cent for limited companies and basic-rate taxpayers, and 145 per cent for others.

Foundation Home Loans commercial director George Gee says: “We have taken this opportunity to make our ranges more competitive for landlords and residential borrowers, by cutting a number of our two- and five-year fixes by up to 50 basis points.

“In the residential range particularly, this is an opportunity for advisers who are seeing an increasing number of clients with complex income or multiple income sources, and the self-employed who may have only one-year accounts.”