What choices do you have for borrowers who have been turned down by the mainstream mortgage market?
Life happens. No one wants to focus on events which may put a strain on short-term financial positions, but things do happen. Credit card payments do get missed. Utility bills do get missed. Mobile phone bills do get missed, and these are the types of credit-related issues which can become historic over a relatively modest period of time.
In a move to distance ourselves from the darker days of times gone by, terms such as near prime, complex prime, credit repair, impaired credit or mainstream misses as Foundation Home Loans like to call them have been created to reflect a modern lending environment and help differentiate between a variety of borrowing needs. And this is where specialist lenders such as Foundation Home Loans can really support your business. Foundation realise that life happens and can help intermediary partners to find the right kind of lending solutions for borrowers who might not currently have a perfect credit record but have a very credible borrowing history who deserve access to a competitive lending solution.
So, with this in mind, Foundation have enhanced their residential product range for borrowers who don’t quite fit with mainstream lending criteria. They call this ‘Mainstream Misses’ – for those clients with near perfect credit scores, accidental historical blips or borrowers with credit blips in the last year.
As long as the borrower hasn’t missed a mortgage payment in the last 36 months, then Foundation will be happy to help if they can. In order to do just that, they have relaxed the credit criteria across their whole residential product range.
Key criteria enhancements include:
- Missed credit card payments are no longer considered as separate – we will now view missed payments on credit cards alongside simple communication blips and other revolving credit.
- Borrowers with minor credit issues will now be allowed one unsatisfied CCJ (maximum £200) on its F2 and F3 product tiers, over 24 and 12 months respectively.
- Defaults up to £250 on telecommunications, utility bills and mail order will now be ignored
- To help simplify the application process and reduce reference requests for residential borrowers, Foundation no longer require bank statements for all cases for affordability.
Borrowers who need a helping hand? They’re welcome under our roof!
And with max loan sizes increasing across all LTV bands Foundation Home Loans have listened to intermediary feedback to introduce options you have requested.
So, if you would like to know more about we can better support the needs of your clients who, for any number of reasons, don’t meet the criteria requirements of the larger, high-street lenders, then why not contact us to find out how to work with Foundation.