Foundation tweaks missed credit criteria and cuts rates

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  • 12/12/2019
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Foundation tweaks missed credit criteria and cuts rates
Specialist buy-to-let lender Foundation Home Loans has made changes to its criteria to accommodate more landlords with missed credit card payments, while reducing rates.

The specialist lender said the criteria changes have been designed to provide more flexibility to landlord clients. 

Where borrowers have missed up to four credit card payments in the last 24 months but have caught up by the time of application, Foundation will now include credit cards in the same category as it does with mail order, communication (e.g. mobile phone) and utility bills. Previously they had been assessed in a separate category. It said broker feedback had influenced the decision to make the change.

It has also opened up its range of mortgages to first-time landlords. Previously, first-time landlords could only pick from mortgages in the ‘F1’ category which meant the borrower could have no more than two missed credit/phone or utility payments in the last two years. Now first-time landlords can choose from buy-to-let mortgages in the F2 which will consider applicants with three missed credit card payments in two years and has more flexible rules around CCJs, secured and unsecured arrears.

The lender has also added deals for borrowers with up to four missed revolving credit payments in the last two years.

Foundation has also made rate reductions across the buy to let range including its five-year fixed rates, which are now priced from 2.89 per cent.  

The remortgage packages no longer have a £125 fee but still come with a free valuation and £250 cashback. End dates have also been rolled on to 30 April of their respective year. 

Jeff Knight (pictured), director of marketing at Foundation Home Loans, said: “We have seen significant growth across our buy to let range in 2019, particularly in terms of servicing portfolio landlords and developing our limited company offering.

“We recently enhanced our residential criteria and are now doing the same for buy to let to ensure we continue to provide more solutions to more intermediaries in 2020.” 

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