The products, named level two and three, provide rates starting from 4.78% and 5.28% respectively, with loan to value (LTV) up to 75%.
The lender will now consider customers if they have CCJs or defaults registered over six months, bankruptcy or IVA discharged for two years, mortgage or secured loan arrears over three months ago, forced or voluntary possessions older than three years.
Around 35% of prospective first-timers are worried about how their credit rating could impact their home buying chances, with 38% actively taking measures to improve their credit score, according to Aldermore’s First-Time Buyer Index.
The figures showed that many prospective buyers have had minor credit blips in their past, 13% have had credit card debt, 12% have missed bill payments and 7% have taken out payday loans.
The research also showed a proportion have had larger credit issues with 6% having had accounts handled by collection agencies, 4% having CCJs on their record and 3% having declared bankruptcy in the past.
Damian Thompson, director of mortgages of Aldermore (pictured), said that the average first-time buyer is 31 years old, which means they were starting their careers the same year the global financial crisis began.
He said: “This group has had to navigate a hugely challenging economic climate so it is reasonable to expect some may have had credit blips, gaps in employment, and even resorted to short-term credit in the past.”
