This will be part of the lender’s F1 offering which is available to those who fall just outside of mainstream lender criteria.
The products have enhanced loan to income (LTI) limits of 5.5 times income and are available at 75 and 85 loan to value (LTV). The maximum loan size is £1m at 75 per cent LTV and £750,000 at 85 per cent LTV.
The two-year fixed rate starts at 7.69 per cent at 75 LTV and 8.09 per cent at 85 per cent LTV, while the corresponding five-year fixes are priced at 7.04 per cent and 7.39 per cent respectively.
There is a £595 product fee and the incentive of a free standard valuation for purchase and remortgage, with no application fee.
Foundation Home Loans has categorised key workers into armed forces personnel, NHS clinicians, firefighters within the UK Fire Service, teachers, police and prison officers.
Foundation: Key workers need specific mortgages
Tom Jacob, director of product and marketing at Foundation Home Loans, said: “Key workers are the lifeblood of the public sector, and it is vitally important they can access mortgages specifically for their needs to ensure they can live close to their places of work so they can support their local communities and continue to provide the very best services to members of the public.
“Borrowers in these professions tend to have very stable employment levels, however – and particularly in a higher interest-rate environment – potential borrowing based on income can be a difficult obstacle to get over, particularly if they have additional complexities which mean they just fall outside of mainstream lending criteria. This is why we are offering our specialist solution including enhanced LTI limits to borrowers who work in any one of our eligible key worker professions, which we believe will help these individuals purchase or refinance residential properties.”
He added: “We believe this is a unique borrower demographic that requires a specific product proposition and we are therefore very pleased to be launching these mortgages today, so key workers can keep living and working in their local areas and providing the services that are so vital to all communities.”
