Foundation expands adverse credit criteria and withdraws F4 tier

The intermediary only specialist lender has reduced the number of credit tiers in its residential range to three and withdrawn its F4 tier for new business.

Under the revised criteria, Foundation can now consider unsatisfied county court judgments and defaults registered more than six months ago.

Debt management plans can also be accepted across its F2 and F3 ranges, while the lender has removed limits relating to unsecured and revolving credit.

The criteria changes form part of a wider update to Foundation's residential proposition, which includes revised loan to income limits for higher earners and pricing changes across its residential originations and product transfer ranges.

Selected F1 two and five year fixed rates have been reduced by up to 0.20%, with rates now starting from 5.99%.

Selected F2 two year fixed rates have been cut by up to 0.15%, with rates starting from 6.19%, while selected F3 rates have fallen by up to 0.10% and now start from 6.44%.

Grant Hendry, director of sales at Foundation (pictured), commented: "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."