Foundation Home Loans, the intermediary-only specialist lender, has today announced a number of key criteria changes to its specialist residential range.
Following feedback from adviser, distributor and packager partners, and aligning with Foundation’s strategic goal of increasing its residential market share, the lender said it was targeting its criteria to support cases which advisers may see as less straightforward, or extra-ordinary.
These include self-employed and employed clients who don’t fit the mainstream, who have unusual income, multiple incomes, high commissions or bonus payments, or those with credit blips.
Foundation has introduced the following criteria changes:
- Self-employed borrowers – one year’s accounts now accepted.
- Time in employment – no minimum requirement for current job, however borrowers must have a minimum of three months’ employment history.
- A broader amount of income types plus a percentage of different types now accepted, for example, up to 100% bonus and commission or 100% investment income. 100% of rental income from buy-to-let properties is also now accepted.
- Borrowers allowed to capital raise in order to purchase buy-to-let properties.
- Maximum payment term has been increased to 40 years.
Foundation’s specialist residential products are for borrowers who have less than straightforward requirements, including those with credit blips such as defaults and CCJs, and who may have been turned down by high-street/mainstream lenders.
These criteria changes follow a recent update to Foundation’s specialist products including raising LTV from 75% to 80%, the launch of new five-year deals, and a new offering for first-time buyers.
Jeff Knight, Director of Marketing at Foundation Home Loans, said: “Foundation is well known within the buy-to-let sector and becoming increasingly well known for our residential solutions. The market is delivering a far greater number of specialist residential enquiries to adviser desks, and we want to be in a strong position to help, especially in terms of those cases which may be beyond the ordinary. We have a competitive range of products, offering loans up to 80% LTV, a first-class sales team who are here to answer adviser enquiries, and with these criteria changes, we believe we are broadening the reach of our residential offering to support an increasing demand.”