"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"
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.
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.
As part of the changes, Foundation will now accept one year's accounts for self employed borrowers.
There is now no minimum time in employment required, however borrowers must have a minimum of three months’ employment history.
Additionally, a broader amount of income types plus a percentage of different types will be 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 will be allowed to capital raise in order to purchase buy-to-let properties and the maximum payment term has been increased to 40 years.
Foundation recently increased the maximum LTV on its specialist products from 75% to 80%.
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.”
