Foundation has announced a series of enhancements to its residential proposition, including changes to its loan-to-income (LTI) criteria designed to support a broader range of higher-earning borrowers.
As part of the enhancements, Foundation has reviewed its approach to higher-LTI lending and introduced greater flexibility for borrowers with stronger income profiles.
Under the revised criteria, standard applications will remain subject to a maximum LTI of 4.49x income.
However, sole applicants with an income of £50,000 or more and joint applications with a combined income of £70,000 or more can now access borrowing of up to 5.99x income.
The enhanced LTI criteria is available on applications with up to four borrowers and on joint borrower sole proprietor (JBSP) applications, including consideration of the non-occupying borrowers’ income.
Foundation will also continue to offer key worker applications up to 5.49x income, professional applications up to 5.99x income, and pound-for-pound remortgage applications with no LTI cap.
The LTI enhancements form part of a broader refresh of Foundation's residential proposition, which also includes simplified credit tiers, revised adverse credit criteria and a number of pricing changes across both its residential originations and product transfer ranges.
Grant Hendry, director of sales at Foundation, commented: "The housing market continues to present affordability challenges for many borrowers, particularly those with strong incomes who find their borrowing potential restricted by standard loan-to-income limits rather than their ability to repay the loan.
"These changes allow us to take a more flexible approach for higher-earning customers across a range of borrowing scenarios, including joint applications and joint borrower sole proprietor cases. They enhance our ability to support creditworthy borrowers whose circumstances may not fit a standard lending model.
"Alongside the wider enhancements we've made to our residential proposition, these changes give brokers more options when placing cases and provide more opportunities to say yes to customers with strong affordability. Ultimately, it's another example of our commitment to making mortgages happen."
