Foundation Home Loans has reappraised its residential mortgage credit tiers.

The reappraisal sees the introduction of a new F4 product tier, in addition to making changes to the permitted credit events in its F1, F2 or F3 products based on when they occurred.

The new range provides more product options for borrowers who have an impacted credit score and have experienced more recent life events but have shown they are able to make their mortgage payments.

Foundation’s F1-F4 products are open to those borrowers who may have revolving credit blips, CCJs and defaults or unsecured loan arrears.

The products are structured based on how recently the credit events occurred. 

F1 is suitable for those borrowers who have had only minor credit issues in the last 36 months whereas the new F4 tier will consider those who have experienced life events that have resulted in a greater credit impact as recently as seven months ago. 

Selected tiers are also available to those with short-term credit and those who have had a debt management plan.

The lender says the last two years have impacted its core residential borrower demographic, such as the self-employed, those with complex income or those who fall outside of mainstream criteria.

The new broadened range will help to accommodate the additional blips and instances in recent years, to meet those borrowers’ evolving needs.

Foundation Home Loans managing director George Gee says: “We have reappraised our existing credit tiers to more accurately reflect the position of our core near-mainstream borrowers, now allowing for a wider range of blips in unsecured credit in more recent years.”

“We have also introduced a new F4 tier, and jointly, this should open up our products to a broader group of customers and deliver additional options they may not have had access to previously.”