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Foundation Home Loans adds 80% LTV products for borrowers with credit issues

Jessica Bird

August 6, 2020

Jeff Knight Foundation Home Loans

Foundation Home Loans has added five products to its residential range to provide further options for first-time buyers and home movers with more recent credit issues.

This includes an 80% loan-to-value (LTV) version of the lender’s highly popular 2-year and 5-year fixed rate residential products.

It has also added 2-year variable discount, which offers borrowers the freedom to remortgage at any time with no early repayment charges (ERCs), and two first-time buyer products with lower product fees to help reduce upfront costs.

New additions to the F2 product range include: 3.99% 2-year variable discount at 80% LTV with a £995 fee and no ERCs; 4.19% 2-year fixed rate at 80% LTV until 31 October 2022 with a £995 fee; 4.59% 5-year fixed rate at 80% LTV until 31 October 2025 with a £995 fee; 4.29% 2-year fixed rate for first-time buyers at 80% LTV to 31 October 2022 with a £595 fee; and a 4.69% 5-year fixed rate for first-time buyers at 80% LTV to 31 October 2025 with a £595 fee.

Jeff Knight (pictured), director of marketing at Foundation Home Loans, said: “Current market conditions dictate that lenders have to be agile and adapt to the ever-changing needs of borrowers and our intermediary partners.

“Therefore, we have introduced a number of 80% LTV options to meet growing demand from a range of borrowers who have suffered recent credit blips, such as late payments on credit cards, mail order goods, telecommunications, utilities or unsecured loan arrears.

“Minor credit blips will continue to push some borrowers beyond the realms of mainstream lending but that doesn’t mean they are not credit-worthy, and that their property related needs should be ignored.

“We also believe that demand for specialist [first-time buyer] products is increasing and with borrowers still struggling to raise deposits, these products need to be designed to help reduce upfront costs where possible.

“Additional options are vital for this growing band of borrowers and we have the overall product offering, criteria and service to ensure they can access the mortgages they deserve.”


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