Borrowers must be able to evidence that they are able to repay a mortgage for the product from Darlington Building Society.
The mutual said the product would also suit applicants who have been with an adverse lender and are nearing the end of the product period, but still have a credit profile that would not fit the criteria allowed for a standard remortgage with a high-street lender.
The Credit Lite mortgage is fixed for five years and available up to 80% loan to value (LTV). It has a rate of 5.89% and a £999 product fee. A maximum loan of £1m is available up to 75% LTV, or £750,000 up to 80% LTV. The minimum loan size is £25,000.
Overpayments of up to 10% are allowed within the fixed rate period, and there are early repayment charges (ERCs) that start at 5%, then fall incrementally over the initial period.
Chris Blewitt (pictured), head of intermediary distribution at Darlington Building Society, said: “We are pleased to announce the launch of Credit Lite – a mortgage available to those with what we are describing as ‘blips’ on their credit file. For example, an applicant could have missed a credit repayment along the way in an otherwise perfectly suitable application, with sufficient evidence of affordability and willingness to upkeep mortgage repayments.
“Darlington’s approach to lending is to make complex cases simple, and this is a prime example of that in action. By carefully assessing each application on a case-by-case basis, we can avoid the ‘computer says no’ approach taken by typical high-street lenders and help to make more people’s dreams of homeownership a reality.”
In February, Darlington Building Society increased the procuration fee paid to brokers for product transfers and retention products to 0.3%.
