Hinckley and Rugby Building Society’s adverse credit product caters for borrowers with county court judgments (CCJs), debt management plans (DMPs), individual voluntary agreements (IVAs), payday loans and missed payments on items like utility bills, credit cards, mortgages or secured loans.

The lender said that the criteria for the adverse credit product would simplify underwriting requirements and extend coverage to a wider range of borrowers.

On the CCJ side for its adverse credit product, the firm will allow a maximum of two CCJs between three and 36 months up to a total value of £500. It will still not permit CCJs in the last three months.

Regarding credit card, mail order, current account and utilities, the lender will accept up to five months of late payments within the last 24 months. Over 24 months, any number of late payments will be considered.

Looking at DMPs, the firm said that there should be none registered in the last 12 months, and they should be satisfied and discharged prior to completion, and if it was unsatisfied, it must have been “satisfactorily conducted for 24 months and refer to MRC”.

Sponsored

Market Moves: Understanding UK Housing Trends

Introducing the first in our video series “Market Moves: Understanding UK Housing Trends” The

Sponsored by Halifax Intermediaries

On defaults for utilities, credit cards and telecoms for its adverse credit product, it will not accept any within the last three months. The maximum total value is £2,500 in the last 36 months. If it is more than £2,500, it should be referred to a Level 4 mandate holder.

Looking at hire purchase or unsecured loans, as well as mortgages and secured loans, up to two months’ late payments in the last 24 months is acceptable and up to three months’ late payments if it is between 24 and 36 months ago.

On payday loans accepted for its adverse credit product, there should be none in the last six months, with the maximum total value of £5,000 within the last 36 months.

Overall, the lender said that there would be no missed payments within the last three months. The latest payment must be made on unsecured loan payments and there is no maximum number of credit lines with missed payments, as long as there is a “satisfactory explanation”.

 

‘Flex products designed to be adaptable’

Christopher Holmes, senior product and proposition manager at Hinckley and Rugby Building Society, said: “We want to make the broker’s path to application as smooth as possible by cementing the challenges we most commonly see into our published lending criteria. In a fast-changing market, this will mean more brokers getting faster decisions for their clients.

“At Hinckley and Rugby Building Society, we know a one-size-fits-all approach to lending fails to meet the needs of many homeowners today. Most lenders want an applicant’s circumstances to fit one of their mortgages — but our range of flex products are designed to be adaptable to meet the client’s needs.

“The credit flex mortgage offers an affordable, flexible solution to those with previous credit problems, who are often rejected by mainstream lenders. The enhanced criteria [mean] that more borrowers will be able to access this product and benefit from the society’s competitive rates and high service standards.”

Hinckley and Rugby Building Society recently launched a foreign worker range to cater for those who are “typically neglected by most high street lenders”.