Head of Content
Mortgage Advisor & Director
Foundation Home Loans
About Foundation Home Loans
Foundation Home Loans are an intermediary-only mortgage lender, which means they only offer mortgages through brokers, like Teito. They specialise in complex residential and buy-to-let cases that often will not be approved on the high street.
You can compare the latest rates available from Foundation Home Loans below:
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What type of mortgages do they offer?
Foundation Home Loans divide their products and services into three categories:
- Residential mortgages: Including bad credit mortgages, green mortgages, mortgages for professionals & key workers, and specialist remortgage deals.
- Buy-to-let mortgages: A range of specialist BTL deals including portfolio mortgages, HMO & MUFB mortgages, green mortgages and expat BTL.
- Solutions: This range is for more complex buy-to-let mortgages, such as mixed-use properties, consumer buy-to-let and landlords with bad credit.
You can access this lender’s products only through brokers like us - get started here.
Eligibility criteria
The criteria for Foundation Home Loans’ residential range is as follows:
- Deposit requirements: As they mostly offer specialist mortgages, you will need at least 15% deposit to get a residential mortgage from Foundation Home Loans.
- Credit history: They offer a wide range of bad credit mortgages aimed at borrowers with CCJs, defaults, arrears and other issues. Bankruptcies, repossessions and IVAs need to be at least six years old before Foundation will consider lending.
- Age caps: Applicants must be at least 18 years old and can be no older than 75 years of age when the mortgage term reaches its conclusion.
- Loans amounts: You could borrow between £50k and £2 million.
- Self-employed criteria: Can offer a mortgage based on just one year’s accounts, and may consider less than this on a case-by-case basis.
Foundation’s residential mortgage range is dominated by 2 and 5-year fixed rate mortgages.
Buy-to-let mortgage criteria
Foundation Home Loans buy-to-let mortgages have the following criteria:
- Deposit requirements: Start at 20% of the property value (80% LTV).
- Credit history: Will lend to landlords with credit issues including defaults, CCJs and arrears via its standard and Solutions buy-to-let mortgage ranges.
- Applicant types: Offers buy-to-let mortgages to individuals, portfolio landlords, first-time landlords, expats, and limited companies.
- Property types: A range of property types are supported including standard BTL, consumer BTL, holiday lets, short-term lets, HMOs and MUFBs.
- Age limits: Applicants must be aged between 21 and 85 (end of the term).
- Loan sizes: Their lending caps for buy-to-let mortgages are between £50,000 and £5 million but can vary depending on the product type.
Foundation’s BTL range is also dominated by 2 and 5-year fixed rate mortgages.
How much will Foundation let you borrow?
They will cap your maximum borrowing at just under 4.5 times annual salary for residential mortgages. Enter your total income into the calculator below to get an idea of what that equates to for you and how it compares to the higher income multiples other lenders use.
Buy-to-let mortgage affordability is based on the interest cover ratio - i.e. what percentage of the mortgage payments the property’s rental income will cover. It needs to be the following:
- Basic rate taxpayers: 125%
- Higher rate taxpayers: 145%
- Limited Companies: 125%
What interest rates are currently available?
As a specialist lender, Foundation Homes Loans has slightly higher mortgage rates than what you will find on the high street as they typically lend to higher risk customers.
The exact rate you will end up with will depend on the LTV, the product type and the overall strength of your application, among other factors.
You can use our free rates comparison service to find out how Foundation Home Loans’ mortgage rates compare to more than 90 of their competitors across the market.
Are Foundation Home Loans a good mortgage lender?
They are known to have a strong track record helping customers with various types of bad credit and complex buy-to-let cases. Their intermediary-only service currently holds a rating of 4.6/5 on consumer review aggregation service Trustpilot, indicating ‘excellent’ reviews.
Pros and cons
The table below highlights the pros and cons of Foundation Home Loans as a mortgage lender to help you decide whether they are the right choice for you.
|
Advantages |
Disadvantages |
|
Offers a range of bad credit mortgages |
Relatively limited product choice |
|
A wide range of options for buy-to-let landlords, including complex applicants |
High deposit requirements than some specialist lenders |
|
Specific products for HMO, MUFB and mixed-use property buyers |
Uses lower income multiples than some lenders to calculate affordability |
|
Flexible with self-employed applicants |
Age limits can be stringent |
How to apply for a mortgage with Foundation Home Loans
The only way to apply for a mortgage with them is through a mortgage broker, like us. We have a deep working relationship with Foundation Home Loans and can help you access their products, but we will also compare them with the competition for you.
If you use our free comparison service and decide you like the look of one of their deals, our brokers can secure that deal for you, after making sure it’s the best one available.
Get started here to compare the latest rates from Foundation Home Loans and take advantage of a free, no-obligation chat with a broker who specialises in their products.
How Teito Works
You have two options when you get started with Teito: you can select the option to speak with an advisor straight away or source a mortgage yourself. If you want to choose your own mortgage deal, follow the steps below:
Click ‘Get Started’
Hit the button below and enter a few quick details. It takes less than 60 seconds to begin the mortgage process with us
Compare Quotes Online
Next you can view rates and deals from across the entire market online and choose the one you want in real time
Apply Online
We’ll take it from here and have an expert mortgage broker on hand to ensure you have chosen the best deal for you