Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Foundation and Principality Intermediaries Raise Rates on Mortgage Products
Foundation has announced changes to selected products across its buy-to-let (BTL) range, effective immediately. The lender is increasing rates on selected F1, F2 HMO, F2 MUFB, Large HMO, Short Term Let (STL), and Expat fixed rate products.
According to the announcement, prices will rise by as much as 0.30% on selected F1 two- and five-year fixed products. Selected F2 HMO two- and five-year fixed products will see rate increases of up to 0.25%. Additionally, rates on F2 MUFB, Large HMO, STL, and Expat two- and five-year fixes will increase by 0.10%.
Principality Intermediaries has also made rate increases, effective 20 July, across its residential, joint borrower sole proprietor (JBSP), BTL, one-year Self-Employed, and six-month CIS products. Two-, three-, and five-year fixed residential rates at 65% loan-to-value (LTV) will rise by 0.20%, while rates at 80% and 85% LTV will increase by up to 0.15%.
JBSP two- and five-year fixes at 75%, 80%, and 85% LTV will rise by 0.15%, and five-year fixes at 90% LTV will go up by 0.07%. For BTL products, two-year fixes at 60%, 70%, and 75% LTV with a 3% fee will increase by 0.10%. Five-year fixes at 60% LTV (without a fee) and 70% LTV (with a £895 fee) will rise by 0.05% and 0.10% respectively.
One-year Self-Employed and six-month CIS two-year fixed rates at 65% LTV have increased by up to 0.10%, while five-year fixed rates at 65% LTV will rise by up to 0.06%. Two-year fixes at 75% and 85% LTV will rise by as much as 0.15%, and five-year fixes at 75% and 85% LTV will go up by as much as 0.20% and 0.05% respectively. Principality has also lowered rates on its one-year Self-Employed and six-month CIS five-year fixed at 90% LTV by 0.07%.
These changes may impact letting agents and inventory clerks working with landlords and property investors who rely on these mortgage products for buy-to-let and residential property transactions.
Source: Mortgage Strategy