Foundation boosts credit criteria to support non-standard borrowers

Foundation has unveiled a series of enhancements to its residential credit criteria.

The lender said the changes were designed to provide greater support for borrowers with historic credit issues, while continuing to offer brokers more flexibility when placing specialist cases.

As part of the changes, Foundation can now consider unsatisfied county court judgements and defaults that were registered more than six months ago, accept Debt Management Plans across its F2 and F3 ranges, and no longer has limits around unsecured and revolving credit.

The lender has also reduced the number of credit tiers in its residential range to three and withdrawn its F4 tier for new business.

The enhancements are designed to give brokers greater flexibility when supporting borrowers with historic adverse credit histories.

The criteria enhancements form part of a broader refresh of Foundation's residential proposition, which also includes updated loan-to-income limits for higher earners and a number of pricing changes across both its residential originations and product transfer ranges.

Grant Hendry, director of sales at Foundation (pictured above), said: "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.”