The lender has reduced its credit tiers from four to three and now accepts unsatisfied CCJs and defaults registered more than six months ago.
Foundation has updated its residential credit criteria to give more support to borrowers with historic credit issues.
The lender has reduced its credit tiers from four to three, widened access for borrowers working to rebuild their finances, and now accepts unsatisfied county court judgments (CCJs) and defaults registered more than six months ago.
Debt Management Plans are accepted on its F2 and F3 products and there are no longer any limits around unsecured and revolving credit.
The changes mean brokers have more flexibility when placing specialist cases, especially for borrowers who might not fit mainstream lender requirements.
Foundation has also updated loan-to-income (LTI) limits for higher earners and made rate reductions across its F1, F2 and F3 fixed rates.
F1 2- and 5-year fixed rates are now down by up to 0.20%, starting from 5.99%.
F2 2-year fixes are down by up to 0.15%, starting from 6.19%.
F3 rates are down by up to 0.10%, starting from 6.44%.
The F4 credit tier has been withdrawn for new business.
Grant Hendry (pictured), director of sales at Foundation, said: “A credit history rarely tells the complete story of a customer’s circumstances.
“Many borrowers experience life events which can impact their credit profile for a period of time, but that shouldn’t automatically prevent them from accessing mortgage finance in the future.
“These changes reinforce our commitment to common-sense underwriting and taking a broader view of each case.”
Hendry added: “By expanding our approach to adverse credit and recent payment blips, we’re giving brokers greater flexibility to support borrowers who are rebuilding their financial position.
“Ultimately, this is about helping more customers move forward on their homeownership journey while giving brokers the confidence that we can support a wider range of circumstances, making mortgages happen.”