Foundation’s New Limited-Edition Buy-to-Let Mortgages: What London Landlords Need to Know

Foundation’s Limited-Edition Buy-to-Let Mortgages: Overview

In mid-2024, Foundation introduced two limited-edition buy-to-let (BTL) mortgage products at 75% loan-to-value (LTV). One key product is a green mortgage option for properties with Energy Performance Certificate (EPC) ratings A to C. Both products feature competitive interest rates and reduced upfront costs by waiving application fees and including free standard valuations.

These offerings present real opportunities for London landlords managing diverse portfolios—whether single-unit, HMO, or multiple properties—to save on borrowing costs and align with evolving energy efficiency standards.

Why These Offers Matter to London Landlords

Mortgage costs directly impact rental profitability. By waiving application fees and providing free valuations, Foundation reduces upfront borrowing expenses, easing cash flow pressures at purchase or remortgage.

The green mortgage option rewards landlords with EPC A-C rated properties through preferential rates, supporting compliance with tightening energy efficiency standards. With London’s lettings market increasingly focussing on greener homes—and Minimum Energy Efficiency Standards (MEES) set to become stricter—this product aligns financial incentives with regulatory priorities.

Practical Implications by Landlord Profile

• Single-Unit Landlords: Owners of EPC A-C properties can benefit from lower mortgage costs and waived fees, improving overall yield. Even if your property isn't green rated, the standard limited-edition product offers fee savings.

• HMO Landlords: HMOs often find it challenging to reach EPC C due to property complexity. However, where feasible, investing in energy efficiency improvements may unlock green mortgage savings. Reduced fees help when refinancing multiple units.

• Portfolio Landlords: Savings accumulate across multiple properties through fee waivers and valuations. Prioritising green mortgage eligibility can reduce financing costs and future-proof portfolios against MEES compliance.

• Accidental Landlords: New or small-scale landlords can ease entry or remortgage pain points through waived fees and valuations, making these limited-edition products worth exploring.

Assessing Eligibility and Next Steps

1. Verify EPC Ratings: Confirm your properties’ EPC status. EPC A-C properties qualify for the green mortgage; others still benefit from the standard product.

2. Review Current Mortgage Costs: Compare existing rates, fees, and valuation charges with Foundation’s offerings to calculate potential savings.

3. Contact Foundation or Your Broker: Confirm full product terms, interest rates, eligibility criteria, application windows, and any volume limits.

4. Plan Timing: Schedule purchases or remortgages to take advantage of these limited-edition offers before expiry.

5. Consider Upgrades: For EPC D or below properties, evaluate cost-effective improvements to reach EPC C, unlocking green mortgage benefits.

Monitoring Market Developments

While these products are limited-edition, other lenders may soon introduce similar green or fee-waived mortgages. Stay informed on market offerings and evolving regulations to maintain a competitive mortgage strategy.

How Rentals & Sales Can Support You

Our team offers thorough portfolio reviews and compliance audits to identify energy efficiency upgrade opportunities and mortgage optimisation strategies. We liaise with brokers and lenders to help you secure favourable terms. Additionally, our pricing strategy experts guide rental adjustments reflecting enhanced property standards and reduced financing costs.

Compliance Disclaimer: This article is informational and not financial advice. Please consult mortgage brokers or financial advisors for personalised assessments before making borrowing decisions.