Foundation Home Loans has announced rate cuts to select five-year fixed rate buy-to-let mortgage products.
The reduced offers are within the lender’s F1 and F2 range, with the former range available for borrowers with no CCJs, defaults or mortgage arrears in the last six years, while the latter range is for individuals with “more recent blips on their credit record”.
The 65 per cent LTV five-year fix has been reduced from 3.29 per cent to 3.19 per cent, and the 75 per cent LTV five-year fix has been sliced from 3.45 per cent to 3.35 per cent.
Both the above two products are within the lender’s F1 range.
In addition, the lender has cut rates on the 65 per cent LTV five-year fix from 3.39 per cent to 3.34 per cent, and the 75 per cent LTV five-year fix from 3.55 per cent to 3.49 per cent, with both these products in the lender’s F2 range.
Shawbrook have made the following enhancements to their second charge range:
Introduced a new contractor policy - lending up to 95% LTV, any industry considered, first time contractors accepted, daily rate x 5 x 48 weeks
Refined their affordability model which means that more cases should "pass", giving you more confidence in submitting business
Bank statements are not required for affordability purposes with the exception of when a customer would like to consolidate greater than £35,000 of unsecured debt and they have more than £1,000 disposable income per month, which means no more line-by-line assessment
Removed the minimum income requirement of £16,500
Simplified credit score with a minimum of 350 for all plans, and 375 for debt consolidation (includes any secured or unsecured credit being repaid)
Increased LTI of 6x, up to 85% LTV with a LTI of 4.5x between 85.01% and 95% LTV
Removed the LTV restriction when lending on ex-council houses
Reduced minimum time in employment from 6 months to 3 months
Increased the maximum loan term from 25 to 30 years
Reduced their self-employed bank statement requirement from 3 months to just the latest month's business bank statement
100% child benefit accepted - where the child is no older than 12 years old when the Binding Mortgage Offer is issued
Lending up to and into retirement (maximum age for all applicants at the end of the loan term is 85 years) Acceptable explanations for repaying the loan past 67 years old include: Downsize in property, Pension income, Additional BTL properties that may be sold, and/ or that generate income