Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Foundation Home Loans Expands LTI Criteria for Higher Earners

Foundation has revised its loan-to-income (LTI) criteria to support higher-earning residential borrowers. The changes allow eligible applicants to borrow up to 5.99 times their income, exceeding the previous standard of 4.49 times income.

Under the new criteria, sole applicants with an income of £50,000 or more can now access borrowing of up to 5.99 times their income. Joint applicants with a combined income of £70,000 or more are also eligible for the increased LTI limit. The updated policy applies to applications with up to four borrowers and includes joint borrower sole proprietor (JBSP) arrangements.

Foundation stated that these changes are intended to support a range of customer segments, such as high-net-worth individuals who do not meet traditional professional borrower definitions, creditworthy customers whose borrowing capacity is limited by house prices, joint borrowers with strong combined incomes, and families using JBSP arrangements to help relatives access or remain in homeownership.

The LTI enhancements follow recent updates to Foundation’s adverse credit criteria and pricing changes. These developments may be relevant to letting agents and inventory clerks monitoring mortgage market trends and affordability criteria, as they could impact the pool of potential tenants and buyers in the UK property market.