Foundation Home Loans has introduced a new limited edition five-year fixed rate mortgage for portfolio buy to let borrowers, alongside a reduction in the price of its existing two-year fixed deal. These changes come as lenders respond to market conditions and provide landlords with more competitive borrowing options amid ongoing fiscal uncertainty.

New five-year fixed rate option for portfolio landlords

Foundation Home Loans has launched the F1 Limited Edition five-year fixed rate mortgage at 5.24% for loans up to 75% loan-to-value (LTV), with a 1.75% arrangement fee. This product includes a free standard valuation and no application charge, but is exclusively available to portfolio landlords with an almost clean credit history.

This new offering provides landlords managing multiple properties with a longer-term fixed rate option, helping to provide stability in mortgage repayments over five years. The inclusion of a free valuation and no application fee reduces upfront costs, which can be particularly beneficial for landlords seeking to manage cash flow effectively.

Reduction in two-year fixed rate for larger loans

Alongside the new product, Foundation has reduced the rate on its existing 75% LTV Limited Edition two-year fixed mortgage by 25 basis points, bringing it down to 4.99%. This deal carries a £2,995 fee and requires a minimum loan amount of £200,000.

Foundation’s director of product, Tom Jacob, explained that these adjustments aim to assist brokers and landlords who had delayed decisions pending the Autumn Budget and greater fiscal clarity. With headline tax changes deferred for at least 18 months, the lender expects renewed activity from landlords and brokers.

Jacob commented: “Many landlords have spent the last few weeks waiting to see what the Budget would bring. Now that we have more clarity, the changes that could affect them are still some way off, and we expect a number of brokers to see renewed interest from clients who had paused decisions.” He added that the rate cut on the two-year fixed deal offers brokers a sharper option for larger loans with a straightforward flat fee and competitive rate.

Market context: Paragon Bank reports lending growth

In related market news, Paragon Bank has reported a 3.4% increase in its mortgage loan book, reaching £13.9 billion. This growth is attributed to high retention levels and stable new buy to let lending. Annual redemptions stood at 7%, while new buy to let advances totalled £1.49 billion, including £782.3 million for properties with EPC ratings A to C.

Paragon’s managing director of mortgages, Louisa Sedgwick, noted: “This is a strong set of results in challenging market conditions, and we are pleased to have supported thousands of landlords to provide much-needed new homes in the private rented sector.” The bank’s new mortgage origination platform has improved conversion rates and accelerated case handling, benefiting both brokers and borrowers.

The Mortgage Works reduces switcher rates

The Mortgage Works (TMW) has also announced reductions of up to 0.20 percentage points across selected switcher mortgage products. These include a two-year fixed rate at 2.89% with a 3% fee up to 75% LTV, a five-year fixed rate at 3.69% with a 3% fee, and a two-year limited company option at 3.79% with a 3% fee.

Joe Avarne, TMW’s senior manager, stated: “As one of the UK’s leading buy to let lenders, The Mortgage Works offers landlords a broad range of options to meet their varying needs. These latest rate reductions demonstrate our continued commitment and support to our existing landlord customers who are coming to the end of their current deal.”

Implications for UK landlords and agents

These developments in buy to let mortgage products reflect a cautious but supportive lending environment for landlords managing portfolios. The availability of a new five-year fixed rate product from Foundation offers portfolio landlords greater certainty over medium-term borrowing costs, which can aid financial planning and rental pricing strategies.

Meanwhile, reductions in two-year fixed rates and switcher deals from Foundation and TMW provide options for landlords looking to refinance or switch mortgages, potentially reducing monthly repayments or fees. The deferral of significant tax changes for at least 18 months also offers landlords some breathing space to make informed investment and borrowing decisions.

For letting agents and property managers, these mortgage product changes may stimulate increased landlord activity in the market, including portfolio expansion or refinancing. Understanding these products and their eligibility criteria, such as the requirement for a clean credit file and minimum loan sizes, will be important when advising landlord clients.

Looking ahead

As the buy to let market continues to adapt to economic and fiscal developments, landlords and agents should monitor lender offerings closely to identify competitive mortgage options. Foundation’s new five-year fixed rate and reduced two-year fix, alongside TMW’s switcher rate cuts, demonstrate lenders’ willingness to support landlords amid ongoing uncertainty.

Additionally, Paragon’s growth highlights sustained demand and lender confidence in the private rented sector, particularly for energy-efficient properties.

Upcoming Trusted Partners Hub from TLA

The Landlord Association (TLA) is launching a new Trusted Partners Hub in the first quarter of 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/.