Foundation has made significant changes to its buy-to-let (BTL) mortgage offerings, reintroducing its ERC3 fixed-rate product and reducing rates across various options. These updates are particularly relevant for landlords and investors looking for competitive financing solutions in the current mortgage market.
What new products has Foundation launched?
The lender’s updated range includes the F1 and F2 remortgage-only, five-year fixed-rate products, both available at 75% loan-to-value (LTV). The F1 product is offered at a rate of 6.44%, while the F2 is set at 6.54%. Both come with a free standard valuation and £500 cashback, along with no application fee. Additionally, the F1 ERC3 five-year fixed product is available at a rate of 6.39% with a 1.5% fee, while the F1 EPC Saver five-year fix offers a rate of 6.49% with a 1.25% fee, including £1,000 cashback and a complimentary energy-saving audit.
How have rates changed for existing products?
Foundation has also reduced rates on its existing MUFB five-year fixed product, now at 6.09% with a £4,995 fee, down by 0.15%. The holiday let five-year fixed product has seen a reduction of 0.10%, now priced at 6.24% with the same fee. These adjustments reflect the lender’s strategy to remain competitive in the evolving mortgage market.
What does this mean for landlords and investors?
The reintroduction of the ERC3 five-year fixed-rate product is particularly significant for landlords, as it allows for early repayment charges only during the first three years of the five-year term. This flexibility can be advantageous for those looking to manage their investments more dynamically. Furthermore, the cashback offers and free valuations can help reduce upfront costs, making these products more accessible for both new and existing landlords.
How do these changes impact the mortgage market?
These updates from Foundation are likely to influence the wider mortgage market by providing more options for landlords and investors. As lenders adjust their offerings, borrowers should stay informed about current mortgage rates and consider how these changes may affect their financing strategies.
Frequently asked questions
What is the ERC3 fixed-rate product?
The ERC3 fixed-rate product from Foundation includes early repayment charges only for the first three years of a five-year term, providing more flexibility for borrowers.
How can I benefit from these new mortgage options?
Landlords can take advantage of competitive rates, cashback offers, and no application fees, making it easier to finance their properties and manage costs effectively.