It designs a specific product proposition for key workers
Specialist lender Foundation Home Loans has expanded its owner-occupied mortgage proposition, launching products with enhanced loan-to-income (LTI) limits for key workers.
The new products, which are part of Foundation’s F1 tier range, allow first-time buyers, home movers, and remortgagers in eligible key worker professions to borrow up to 5.5 times their income.
The lender said the key worker product range had options at 75% and 85% loan-to-value (LTV), with maximum loan sizes of £1 million for up to 75% LTV and £750,000 for up to 85% LTV.
Key Workers are generally defined as those working in the public sector, including armed forces personnel, NHS clinicians, firefighters within the UK Fire Service, teachers, and police and prison officers working within the UK Policy Force and HM Prison Service.
“We believe this is a unique borrower demographic that requires a specific product proposition, and we are therefore very pleased to be launching these mortgages today, so key workers can keep living and working in their local areas and providing the services that are so vital to all communities,” Tom Jacob (pictured), director of product and marketing at Foundation Home Loans, stated in a post announcing the new product range.
Foundation said the key worker products were available to borrowers across England, Wales, and Scotland to provide support for this group of borrowers to enable them to purchase or remortgage a residential property.
The lender is offering two-year fixed rates starting at 7.69% up to 75% LTV, and 8.09% up to 85% LTV, and five-year fixed rates at 7.04% up to 75% LTV, and 7.39% up to 85% LTV.
All of the key worker products are priced with lower product fees of £595 to reduce upfront costs, as well as coming with one free standard valuation for purchases and remortgages, and no application fee. The products are also available on a capital and interest basis only.
“Key workers are the life blood of the public sector, and it is vitally important they can access mortgages specifically for their needs to ensure they can live close to their places of work so they can support their local communities and continue to provide the very best services to members of the public,” Jacob said.
“Borrowers in these professions tend to have very stable employment levels, however – and particularly in a higher interest-rate environment – potential borrowing based on income can be a difficult obstacle to get over, particularly if they have additional complexities which mean they just fall outside of mainstream lending criteria.
“This is why we are offering our specialist solution including enhanced LTI limits to borrowers who work in any one of our eligible key worker professions, which we believe will help these individuals purchase or refinance residential properties.”
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