The changes include revised adverse credit criteria, enhanced loan-to-income (LTI) allowances for higher-earning borrowers and updates across its residential product range, giving brokers greater flexibility to support customers whose circumstances may not fit a traditional lending model.
We have already seen a notable increase in demand for our residential products following the introduction of the refreshed criteria and products.
The enhancements reflect two key realities of today's housing market. Firstly, that historic credit events do not always represent a customer's current financial position or future borrowing potential. Secondly, strong incomes and good affordability do not always translate into sufficient borrowing power under standard lending limits.
As part of the changes, we have widened access for borrowers rebuilding their financial position following historic adverse credit events, reinforcing our common-sense underwriting approach and recognising that past life events do not necessarily define a customer's ability to manage mortgage commitments today.
We have also introduced greater flexibility for higher-LTI lending, offering qualifying higher-earning customers access to borrowing of up to 5.99x income across a wider range of application types, including larger households and JBSP arrangements. The changes are designed to support a variety of customer segments, including high-net-worth individuals, customers with constrained borrowing capacity, joint borrowers with strong combined incomes and families using JBSP arrangements to support relatives into or in homeownership.
We will also continue to offer Key Worker applications up to 5.49x income, Professional applications up to 5.99x income and pound-for-pound (£4£) remortgage applications with no LTI cap.
The refreshed proposition also includes reduced rates across our Residential Originations range, helping brokers support a wider range of specialist residential cases while making mortgages happen.
Grant Hendry, Director of Sales at Foundation, commented:
"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. By expanding our approach to both affordability and adverse credit, we're giving brokers more flexibility and creating more opportunities to say yes to customers whose circumstances may not fit a traditional lending model."
"Ultimately, these changes are about helping more people move forward with confidence on their homeownership journey and ensuring we're continuing to deliver on our commitment to making mortgages happen."
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