The criteria applied by providers of full current account mortgages such as Britannic Money and Woolwich are generally the same as typical conforming and mainstream products. That is to say, adverse credit history is not acceptable. At best, only a nominal number and value of county court judgements (CCJs) would be accepted, provided they were immediately satisfied and historic.
The target market for the current account mortgage product can be defined as the financially aware customer who has large savings or a significant monthly income with which to offset mortgage interest as well as the self-employed who can make use of the current account and the flexibility for over and under payments.
Anyone who has demonstrated a lack of ability to manage their finances is not a sound risk and a track record of adverse credit will almost certainly be rejected.
If your client still wants some flexibility in their mortgage product in terms of overpayments, underpayments, payment holidays, and daily interest calculations, there are two mortgage providers which allow a moderate level of adverse history, with these full flexible features, but without current account facilities.
First, The Mortgage Business will allow up to three CCJs to £1,000 in value, up to 90% LTV for second-time buyers or for remortgages, at a 5.84% variable rate. The CCJs can be outstanding at application, but must be satisfied by completion.
Alternatively, First National Mortgage Company allows up to three CCJs to £3,000 in value, also to 90% LTV for both purchase and remortgage. The interest rate is structured as a base rate tracker, currently 5.24%. With this lender, there must be no CCJs registered in the last year for the application to be accepted.
Stuart Johnson
