Foundation and Paragon unveil new buy to let mortgage options

Foundation Home Loans and Paragon Bank have announced updates to their buy to let mortgage offerings, targeting landlords with diverse property portfolios.

These enhancements aim to provide greater flexibility, competitive pricing and tailored solutions for complex property types.

Foundation has revamped its complex BTL range, introducing new fixed-rate products, reducing rates and streamlining fee structures.

The updates cater to landlords managing properties such as houses in multiple occupation (HMOs), short-term lets and mixed-use buildings.

Among the changes are:

• Property Plus: Designed for standard buy to let properties adjacent to commercial premises, with two- and five-year fixed rates reduced by 15 basis points, starting at 6.59% at 75% loan-to-value (LTV). A new five-year fixed-rate option at 6.49% with a 2.5% fee has been added
• HMO plus: For HMOs with up to six occupants, rates for two- and five-year fixed products have been cut by 15 basis points, starting at 6.69% at 75% LTV
• Short term lets plus: Properties let on a short-term basis now benefit from a 15-basis point reduction, with rates starting at 6.74% at 75% LTV
• Mixed use: For properties combining residential and commercial elements, two new fixed-rate products at 60% LTV have been introduced, starting at 6.84%, while the existing 70% LTV two-year fixed rate has been lowered by 10 basis points to 7.29%. Product fees across all variants, including expat applications, have been reduced to 2.5%.

Foundation’s BTL specials

Foundation has also lowered rates on several BTL specials, including a five-year fixed-rate portfolio landlord product now at 4.69%, a two-year fixed-rate for limited company HMOs at 4.54%.

There’s also a five-year fixed-rate for multi-unit freehold blocks (MUFBs) at 5.39%, and a five-year fixed-rate for short-term let limited companies at 5.49%.

The lender’s director of product and marketing, Tom Jacob, said: “We continue to enhance our complex buy to let offering in line with what brokers are seeing in the market.

“The need for flexible, fairly priced options is only growing among professional landlords, whether they are managing more complex HMOs, letting on a short-term basis or financing a mixed-use property.”

Paragon’s BTL product launch

Meanwhile, Paragon Bank has launched limited edition two-year fixed-rate buy to let products, boasting market-leading rates starting at 3.45% for single self-contained (SSC) properties.

That’s if they have an EPC rating of A-C, available at up to 70% LTV with a 4% product fee.

For these properties, Paragon has eliminated the application fee and offers £500 cashback plus free mortgage valuations.

Equivalent products for HMOs and multi-unit blocks are priced at 3.80%, with interest coverage ratios calculated at 5.8%.

Market-leading rates

Paragon’s mortgages product manager, James Harrison, said: “With the economy settling a little following recent disruption, swap rates have gradually reduced, enabling us to lower rates for landlord customers.

“It’s fantastic to be able to offer some market-leading rates on two-year fixed deals, which brokers tell us are a popular option currently.”

He added: “Removing the application fee on our SSC products and offering cashback and free mortgage valuations also provides landlords with some attractive options.”

Paragon has also streamlined its application process for landlords with up to 15 properties, reducing the need for supporting documents and accelerating application times through a new bespoke mortgage platform.

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