Improvements to products from Foundation Homeloans  - 01/07/2020 14:43

Foundation Home Loans, the intermediary-only specialist lender, has today announced a number of key criteria changes to its specialist residential range.

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:

  • £ for £ remortgage with no income multiple cap
  • Interest only products
  • 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 3 months employment history
  • Broader amount of income types accepted 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 now 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.

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