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Foundation Home Loans

Mortgage Type

Buy To Let

Property Value (min)

£75,000

Advance (min)

£50,000
£750,000 for large loan range excluding fees

Advance (max)

£1,500,000 on Large loan range up to 65% LTV
£1,000,000 to 65% LTV for both individual units and HMO/MUB
£500,000 to 75% LTV
£500,000 (including fees) to 80% LTV (including fees)

Term (Max)

30 years

Minimum Age

21 years old (primary applicant). All borrowers must be over 18 years of age.

Maximum Age

No maximum age for Limited Company applications. 85 for individual applications

Family Cash Gift Deposit

A gifted deposit (100%) is acceptable from immediate family members if accompanied by a declaration from the family member/s confirming no repayment required and that they hold no interest in the property which will be purchased using the gifted funds.

Family Gift of Equity Deposit

No

Income (min)

No requirement - any income must be from a legal source, and will be assessed on the bank statements used to support the BTL application.

Restrictions

Maximum of £3 Million with Foundation Home Loans, unlimited with other lenders.
Exposure limits - Maximum of three properties holding a Foundation Home
Loans mortgage in any one full postcode per borrower.
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Short term / Holiday Lets: -
Yes, Single unit only.
No AST required
Ltd company considered - 1 director must meet criteria.
Air BnB considered
Based on AST rental - however, not required to have AST in place
No to serviced apartments
Up to 75% LTV
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Where multiple applications in the same location are received, underwriters should consider:
Property location, i.e. are the properties in a location where multiple lets could easily be obtained
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Whether there is any relationship between the applicant and the vendor/developer of new properties, i.e. is the applicant genuinely trying to create a personal portfolio, or does he have an interest in the properties and is this an attempt to obtain a cheap source of commercial finance, in which case the application should be declined
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The Company will review concentration risk across the whole of the lender portfolio (Foundation Home Loans) where over exposure may necessitate a decline of the application.
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Acceptable SIC Codes for SPV Ltd companies are:
68100
68209
68320
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Debt consolidation up to 80% LTV for BTL's.

Let to Buy (Turning Residential into Buy to Let)

No

DWP Tenants

No, this also includes DSS tenants.

Ex-Local Authority Properties

Flats and maisonettes - Considered on a case by case basis.
Houses - Yes, subject to valuers comments and good marketability (not First Time Landlords).

Minimum years remaining on leasehold property

50 years remaining on the lease at the end of the mortgage term

Minimum Ownership

If looking to re-mortgage sole BTL, then need to have had existing BTL for 12 6 months (3 months if property purchased via bridging loan).

Permanent rights to reside and remain

All applicants must be resident in the UK at the time of application and have indefinite right to remain or indefinite right of entry.
Applicants would normally have been permanently resident in the UK for the last three years

Ex-Patriates

Ex Pat applications will be considered on Limited Company applications where the applicant:

Has a credit footprint in the UK

Pays UK tax or has declared income for UK tax purposes

Has at least one Buy to Let property in the UK

Is employed by a multi-national employer or Sovereign entity

Has written confirmation from their employer of their residential address in the foreign country and period of residency

Has a UK bank account

Provides the last two years’ SA100 and tax calculations

Ex Pat


Acceptable Areas for Expats

Foundation Homeloans will consider lending where the applicant is based in the EEA, including Iceland, Lichtenstein and Norway.
Foundation Home Loans will not consider lending where the expatriate is resident in, or funds originate from, the following countries:

Afghanistan
Algeria
Bosnia and Herzegovina
Democratic People's Republic of Korea (DPRK)
Ecuador
Ethiopia
Guyana
Iran
Iraq
Loa PDR
Myanmar
Sri Lanka
Syria
Trinidad and Tobago
Tunisia
Uganda
Vanuatu
Yemen

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Where the applicant is resident in a country which is both outside the EEA and not on the above exclusion list (eg Switzerland, USA, Canada, United Arab Emirates) then Foundation Homeloans will consider lending on a case by case basis.

New Builds

Houses - Yes, to 75% LTV

Flats: - Definition: Properties that have been built or significantly altered or refurbished within the last two years.

Significantly altered or refurbished is further defined as properties that have had structural or planning changes sufficient to change the occupancy or use class of the property.

New Build Flats:
• Lending to a maximum of 70% LTV
• Lending limit: No more than 5% of a single block of flats/development subject to a minimum of two units
• Off-plan: We will allow off-plan subject to a satisfactory re-inspection prior to release of funds
• Interest rate coverage must reflect ground rent and service charges where these are deemed to be onerous by the valuer

Properties with schemes and restrictions are not considered such as Section 106 restrictions, Keyworker/affordable housing schemes, shared equity.

Credit Score

Yes

Rental Calculation

For Individual applicants, the rental stress is 145% of pay rate for 5 year fixed products and 145% of pay rate or 5.50% notional rate for all other products.
For Limited Company products, the rental stress is 125% of pay rate for 5 year fixed products and 125% of pay rate or 5.50% notional rate for all other products.

Historic CCJ’s & Defaults

Range Dependent:

Standard Range: No CCJs/defaults registered in the last 24 months, regardless of whether they have been satisfied. All CCJs/defaults must be satisfied and brought up to date at time of application.

Unsecured arrears - for Mail order, Utility accounts, communication contracts & credit cards.

Underwriter can consider up to 4 missed/late payments on 1 individual account or 4 missed/late payments
(4 individual accounts) across a combination of accounts where combine value is less than £500

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No missed mortgage payments in the last 24 months.

Unsecured loans and credit cards - Worst status of 2 in the last 24 months with 0 in the last 12

Other Unsecured (mail order, utility, communication contracts) - Worst status of 4 in the last 24 months

No IVA or Administration Order registered against any borrower.

No Bankruptcy Order against any borrower.

Debt Management Plans: Applicants who have entered into, or are still repaying, a debt management plan in the last 24 months are not acceptable.

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All accounts must be up to date at the time of application,
All CCJ’s and Defaults must be satisfied at the time of application

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Standard Plus Range - CCJs & Defaults: - No CCJs/Defaults registered in the last 72 months, regardless of whether they have been satisfied.
All defaults and CCJs must be satisfied irrespectiveof when they occurred.

Unsecured loan arrears: A worst status of 0 in the last 72 months.

Credit card arrears: A worst status of 0 in the last 72 months.

Mail Order, Communications & Utilities: A worst status of 4 in the last 24 months per account provided all accounts are up to date on application.

Mortgage arrears: A worst status of 0 in the last 72 months.

Valuation Fees

Valuation fees paid direct to lender at the lender fee scale.

Maximum number of applicants

Maximum 2

Countries

Will lend in England and Wales only

Access

Access to Foundation Home Loans is available via selected packagers only.

Missed mortgage payments

Light adverse rates - Maximum of one missed mortgage payment in the last 24 months, with none in the last six months. Prime Rates - No missed mortgage payments in the last 24 months.

Property Type / Commercial

HMO product available where maximum number of permitted occupants is less than or equal to 6

Large HMO products available where maximum number of permitted occupants is more than 6; up to a max of 8 bedrooms

All Multi Unit blocks are classed as Large HMOs up to 10 units.

They offer true no minimum income BTL lending.

First time buyer is defined as someone who has never owned a property. First time buyers are not acceptable as sole borrowers. First time landlord is defined as someone who has not operated a buy to let within the last 6 months. First time landlords are acceptable where the borrower is currently an owner occupier, the deposit is from own sources and not gifted and the property is not above commercial premises, Ex-Local Auth, MoD or Housing Association, an HMO or Multi-Unit, a property where the borrower owns adjacent land or access road.

Location

Will lend in England and Wales only

Type of Credit Search conducted at AIP stage

Hard foot print

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

– Maximum 75% LTV for the overall portfolio
– A minimum rental stress of 125% at 5.5% across the portfolio with at least 100% coverage for each mortgaged property

Portfolio Landlord Criteria

– FHL to an aggregate borrowing of £3m
– No limit on the size of existing portfolio with other lenders

Additional Document Requirements

– Portfolio Schedule – All cases
– Business Plan – Not required
– Cashflow Statement – Not required
– Asset & Liability Statement – Not required
* Lender will accept client versions so long as covers the lenders minimum requirements