Foundation Home Loans
Mortgage TypeBuy To Let
Property Value (min)
£75,000 - unless low loan range, then £60,000
£50,000 for standard range
£500,000 for large loan range excluding fees
£2,000,000 on Large loan range up to 65% LTV
£1,500,000 on loan for both individual units and HMO/MUB up to 65%
£1,000,000 up to 75% LTV
£500,000 up to 80% and 85% LTV
Term (Max)30 years
Minimum Age21 years old (primary applicant). All borrowers must be over 18 years of age.
Maximum AgeNo maximum age for Limited Company applications. 85 for individual applications
Family Cash Gift DepositA 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. Not available for First time landlords
Family Gift of Equity DepositNo
Income (min)No requirement - any income must be from a legal source and evidenced - it will be assessed on the bank statements used to support the BTL application.
RestrictionsMaximum of £5 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.
If block of flats has over 3 storeys with cladding, it will not be considered.
Serviced apartments not considered.
Short term lets are considered
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
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
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.
Acceptable SIC Codes for SPV Ltd companies are:
Debt consolidation up to 75%
Let to Buy (Turning Residential into Buy to Let)No
DWP TenantsNo, this also includes DSS tenants.
Ex-Local Authority PropertiesFlats 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 property50 years remaining on the lease at the end of the mortgage term
Minimum OwnershipIf 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 or for a <6 bed HMO property).
Permanent rights to reside and remainAll 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-PatriatesEx Pat applications will be considered for both individuals and Limited Company (All Directors to provide a personal guarantee for full loan amount) 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
Acceptable Areas for Expats
Foundation Homeloans will consider lending where the applicant is based in the EEA, including Iceland, Lichtenstein and Norway.
Also allowed for EU/EEA/Switzerland can be accepted but only if the offer documentation can be signed/executed in the UK.
Foundation Home Loans will not consider lending where the expatriate is resident in, or funds originate from, the following countries:
Bosnia and Herzegovina
Democratic People's Republic of Korea (DPRK)
Switzerland - can be accepted but only if the offer documentation can be signed/executed in the UK.
Trinidad and Tobago
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 BuildsHouses - 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.
For Individual and Limited Company products: – 145% of pay rate (5 year fixed products) or 5.50% notional rate for all other products
Historic CCJ’s & DefaultsRange 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
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.
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
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 FeesValuation fees paid direct to lender at the lender fee scale.
Maximum number of applicantsMaximum 2
CountriesWill lend in England and Wales only
AccessAccess to Foundation Home Loans is available via selected packagers only.
Missed mortgage paymentsLight 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 / CommercialNewly incorporated limited companies acceptable
HMOs: up to 8 bedrooms and MUBs: up to 10 units
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
If block of flats has over 3 storeys with cladding, it will not be considered.
Short term lets are considered.
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. Will not consider first time landlords
LocationWill lend in England, Scotland and Wales.
Type of Credit Search conducted at AIP stageHard foot print
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