Foundation Home Loans has launched new short-term and holiday rental products through its buy-to-let brand.
The lender has also reduced costs on a select number of its existing buy-to-let mortgages.
The new products include a two- and five-year fix for short-term rental properties. Both are available up to 75% LTV with rates starting from 6.79% with a 1.25% fee.
It has also launched a two-year fixed rate holiday mortgage. This has a rate of 6.99% and is available up to 70% LTV with a 2% fee.
As part of a wider repricing of its products, ‘Buy to Let by Foundation’ has reduced the fee on its F1 five-year ERC3 fixed term mortgages from 1.75% to 1%. The F1 range is aimed at portfolio and non-portfolio landlords with a largely clean credit history, with this particular product only charging early repayment fees in the first three years of the fixed rate period.
The lender has also reduced fees from 1.5% to 1.25% for its F2 large portfolio of two- and five-year fixed rate products. This applies to portfolio loans over £5 million.
Meanwhile, the fee for the five-year F2 loan product – up to £5m for 60% LTV and up to £3m for 70% LTV – has been reduced from 2% to 1.5%.
Foundation said its dedicated buy-to-let products, which cover purchase and remortgage options for both F1 portfolio and non-portfolio landlords, remain available and are unaffected by this product refresh.
These changes follow the launch of new ‘pound-for-pound’ (£4) remortgage options last month.
Tom Jacob, director of product and marketing at Foundation Home Loans, says the changes will help landlords looking to diversify their portfolios, with both short-term and holiday rentals becoming increasingly popular due to the potential for higher rental yields on these properties.
“At the same time, we have been able to reduce costs across a number of products, saving money upfront for landlords and over the life of the mortgage as large numbers of borrowers add costs to the loan.”
He added: “The Foundation will continue to monitor the market and our proposal closely to ensure we have a wide range of product options for landlords looking to purchase or remortgage more specialist property types.”