Foundation doubles buy to let portfolio limit

Foundation Home Loans has revealed it has doubled the size of buy to let portfolio it will now accept, due to its satisfaction with the performance of its existing portfolio loans. The specialist buy to let lender will now be accepting portfolios worth up to £2 million for both purchase and remortgages.

Following the changes to buy to let underwriting outlined by the Prudential Regulation Authority (PRA), which will see a separate regime implemented for portfolio landlords, Foundation is sending a clear message to borrowers in the buy to let sector that they are still offering a wealth of opportunities by doubling the size of the portfolios they will accept.

This will also prove beneficial once stricter underwriting criteria comes into force next year, which many believe will lead to more portfolio landlords entering the market.

Foundation has also made a series of changes to criteria as far as proof of income is concerned. Whereas the lender previously required the last three months of bank statements for proof of income, it will now accept just the last months’ payslip and the latest P60 from the borrower (or the last years’ accounts for self-employed borrowers). Evidence of pension income will also suffice for retired applicants.

By making it easier to evidence income and expand the variation of documentation required to apply, Foundation has proven its ongoing efforts to improve and simplify this sector in wake of so many changes.

Also applying their efforts to make the market easier to navigate for many, Nationwide has announced a more unusual update, revealing its partnership with SignVideo to enable British Sign Language (BSL) users to have full use of the services on offer from Nationwide. The free service is available via a link on the bank’s website, where deaf and hard of hearing customers can now access a BSL interpreter through video.

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