Foundation has expanded its residential mortgage criteria to accommodate more borrowers with historic credit problems or incomes constrained by standard lending limits.
The intermediary-only specialist lender has revised its adverse credit criteria, increased loan-to-income allowances for higher earners and updated its residential product range.
Foundation said it had recorded a notable rise in demand for its residential mortgages since introducing the changes last week.
The lender said historic credit events did not necessarily reflect a customer’s present financial position or future borrowing potential. It added that borrowers with strong incomes and good affordability could still struggle to secure sufficient finance under standard lending limits.
The revised criteria widen access for customers rebuilding their finances after adverse credit events. Foundation said its underwriting would consider the circumstances behind past financial difficulties and a borrower’s present ability to meet mortgage payments.
Qualifying higher earners can now borrow up to 5.99 times their income. The increased allowance is intended to support high-net-worth individuals, borrowers whose capacity is restricted by conventional lending limits, joint applicants with strong combined earnings and families using joint borrower sole proprietor arrangements.
Foundation will continue to accept applications from key workers at up to 5.49 times income and from professionals at up to 5.99 times income. Pound-for-pound remortgage applications will remain available without a loan-to-income cap.
The lender has also reduced rates across its Residential Originations range.
Grant Hendry, director of sales at Foundation, said: “Every borrower has a unique story, and our role is to look beyond headline figures, whether that’s a credit issue from the past or an income level that isn’t fully reflected by standard borrowing limits.
“The housing market continues to present challenges for many customers. Some borrowers have strong incomes but find their borrowing potential restricted by standard loan-to-income limits, while others may have experienced life events that affected their credit profile despite now being in a much stronger financial position.
“These enhancements reinforce our commitment to common-sense underwriting and to supporting a wider range of residential borrowers. We’re giving brokers more flexibility and creating more opportunities to say yes to customers whose circumstances may not fit a traditional lending model.”
