Home Loan Fund cuts rental foreclosure rates and launches new green mortgage



George G. Foundation

“The 10 basis point cut will make them even more competitive and expand our core portfolio, supporting those landlords looking to replenish their portfolios or re-mortgage at a great rate.”

The Home Loan Fund has slightly lowered the interest rate on its five-year fixed-rate rental range and introduced a new 65% LTV Green Reward re-mortgage product.

The five-year fixed term LTV 75% of Foundation is down 10 basis points to 3.24% and includes a 2% commission.

Its ERC-3 product is now set for five years at 3.59% with early repayment fees only for the first three years.

In addition, the five-year fixes of 65% LTV were cut by 10 bps. and now start at 3.14% with 2% commission. The large loan option has been reduced to 2.99% with a 2.25% commission and a maximum loan amount of £ 2 million.

Finally, the five-year fixed deposit of 75% LTV has been reduced from 3.49% to 3.39%, also with a 2% commission.

The lender also cut the rate on the recently launched five-year Green Reward fixed rate repeat mortgage to 3.59% from 3.65% at 75% LTV on a maximum loan of £ 1m. He also introduced a new version of the product with 65% LTV, available at 3.49%, which increases the maximum loan amount to 1.5 million pounds.

Both have a £ 750 cashback on completion plus a 0.65% reduced commission for a 65% LTV product and 0.75% for a 75% LTV product.

Green Reward mortgages are available for private rental properties that have an Energy Performance Certificate (EPC) rated ‘C’ or higher, dated within the last 12 months, except for listed properties that are not eligible.

The five-year revisions are available to both individuals and limited liability company borrowers, and the Fund’s ICR is calculated using a five-year revision rate of just 125% for limited liability companies and taxpayers at the base rate and 145% for others. There is no limit on the size of the borrower’s background portfolio, but no more than £ 3 million with the Fund.

George Gee, Commercial Director of Foundation Home Loans, said: “These rate cuts for some of our most popular five-year fixes are designed to support consultants and their landlord clients, especially if they’re looking for a more generous loan amount; a 10 basis point cut will make them even more competitive and expand our core portfolio, supporting those landlords looking to replenish their portfolio or re-mortgage at a great rate.

“On top of this, and as a direct result of the popularity of our new Green Reward mortgage, which supports these landlords in improving their properties and their EPC rating, we were able to lower the rate from our original 75% LTV rate and introduce a new 65% LTV offer. with an improved maximum loan amount of £ 1.5 million.

“As always, our goal here is to support those rented borrowers who are simply missing out on major credit ratings and to support our consulting partners as they strive to grow their consulting business.”


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