Foundation has relaxed its residential credit criteria to support borrowers rebuilding their financial position after historic credit problems.

The intermediary-only specialist lender has reduced its number of credit tiers to three and widened access for customers who may fall outside mainstream lending requirements.

The changes, announced on 19 August 2026, will allow Foundation to consider unsatisfied county court judgments and defaults registered more than six months ago.

Debt management plans will be accepted across its F2 and F3 ranges, while limits relating to unsecured and revolving credit have been removed.

Foundation said life events could affect a customer’s credit record without necessarily reflecting their present financial circumstances or future borrowing prospects. The revised criteria are intended to give brokers more flexibility when placing cases involving historic adverse credit.

The measures form part of a wider overhaul of the lender’s residential proposition, including revised loan-to-income limits for higher earners and pricing changes across its residential originations and product transfer ranges.

For residential originations, Foundation has cut selected F1 two-year and five-year fixed rates by up to 0.20%, with rates starting at 5.99%.

Selected F2 two-year fixed rates have been reduced by up to 0.15%, starting at 6.19%, while selected F3 rates have fallen by up to 0.10%, starting at 6.44%. The lender has withdrawn its F4 credit tier for new business.

Grant Hendry, director of sales at Foundation, said: “A credit history rarely tells the complete story of a customer’s circumstances. Many borrowers experience life events which can impact their credit profile for a period of time, but that shouldn’t automatically prevent them from accessing mortgage finance in the future.

“These changes reinforce our commitment to common-sense underwriting and taking a broader view of each case. By expanding our approach to adverse credit and recent payment blips, we’re giving brokers greater flexibility to support borrowers who are rebuilding their financial position.

“Ultimately, this is about helping more customers move forward on their homeownership journey while giving brokers the confidence that we can support a wider range of circumstances, making mortgages happen.”