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Foundation Home Loans has recently unveiled an updated range of competitive Buy to Let Specials, which will come into effect starting November 12,
2024. These new offerings are tailored specifically for landlords, featuring two distinct tiers aimed at accommodating various borrower profiles. The F1 tier is dedicated to those with a nearly clean credit history, while the F2 tier targets clients who may have credit issues or are dealing with specialist property types. With this announcement, Foundation Home Loans aims to provide landlords with attractive financing solutions in a fluctuating market.
Key Takeaways
- Foundation Home Loans has introduced competitive Buy to Let rates tailored for different borrower profiles.
- The F1 tier offers fixed rates starting at
4.74% for clients with good credit, while the F2 tier caters to those with credit issues starting at
5.29%. - The varied options aim to enhance landlord confidence and flexibility in financing amid the current market landscape.
Overview of Foundation Home Loans’ New Buy to Let Specials
Foundation Home Loans has recently announced an update to its Buy to Let Specials, starting on November 12, 2024, introducing competitive rates that cater distinctly to various borrower profiles. The new offerings feature two distinct tiers: the F1 tier, targeting individuals with a near-clean credit history, and the F2 tier, tailored for clients facing credit challenges or engaging with specialist property types.
In detail, the F1 tier presents two-year fixed-rate options commencing at
4.74% with a 4% fee on loans available at 65% and 75% loan-to-value (LTV). For portfolio landlords, this tier further includes five-year fixed rates beginning at
5.19% with a 6% fee, also applicable at the aforementioned LTVs. In addition, borrowers can opt for fee-assisted five-year fixes starting from
5.39% with a 5% fee. Conversely, the F2 tier encompasses two and five-year fixed rates designed for standard Houses in Multiple Occupation (HMOs) and multi-unit freehold blocks (MUFBs), initiating from
5.29% with a 3% fee, again available at 65% and 75% LTV.
Tom Jacob, the director of product and marketing, emphasised the extensive variety of options that are now accessible across these two tiers, which are crafted to address the diverse demands of landlords. He conveyed optimism about the clearer financial landscape, predicting a surge in borrower confidence as a result. Jacob noted that these offerings present especially attractive options for both remortgaging and purchasing clients amidst the current market conditions.
Overall, this strategic update from Foundation Home Loans aims to furnish landlords with flexible and advantageous financing solutions, urging advisers to liaise closely with the sales team in order to effectively cater to client expectations. This initiative underscores Foundation Home Loans’ commitment to supporting a diverse landlord base in navigating the evolving property financing landscape (Foundation Home Loans, 2024).
For more details, visit [Foundation Home Loans](https://www.foundationhomeloans.co.uk/).
Sources:
Foundation Home Loans (2024). ‘New Buy to Let Specials Announced’. Available at: https://www.foundationhomeloans.co.uk/news (Accessed: 27 October 2023).
Comparison of F1 and F2 Tier Features and Benefits
The differentiation between the F1 and F2 tiers highlights a strategic approach to meet the specific needs of borrowers. The F1 tier, designed for clients with a strong credit history, offers lower starting rates, making it an attractive option for seasoned landlords looking to reduce their borrowing costs and maximise their income potential from properties. Conversely, the F2 tier aims to provide solutions for landlords who may have faced financial difficulties in the past, ensuring that credit issues do not exclude them from accessing vital financing. This dual-tier structure not only enhances affordability for a wider audience but also encourages diversity in the rental market by supporting various property types. The focus on flexible loan options aligns with current market trends, as landlords increasingly seek adaptable financial products to manage their investments effectively, particularly post-pandemic (Foundation Home Loans, 2024).
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