The lending criteria for credit renew products will offer “greater flexibility”, as defaults of up to £1,000 will be accepted on standard lending.
This is subject to them being registered more than six months ago and no more than two in the last two years.
If a client is in default, they can settle this with the loan subject to the maximum LTV.
Liz Pearson, Chorley Building Society’s head of lending, said: “Our underwriting team have a great deal of experience in credit renew cases. They are very happy to advise brokers on any cases that they may have that may fall into this specialist lending.”
The LTV for its credit 1 and credit renew 2 products is 90% and 75% respectively. This is an increase from 80% and 70% previously.
Category 1 and category 2 acknowledges the differing stages that customers may be at in their recovery from life events.
The credit renew 1 two-year discount product at 90% LTV is 7.14%, while the firm’s credit renew 2 product at 75% LTV is 7.49%.
Stuart Bryce, Chorley Building Society’s head of business development, said: “We understand that sometimes a client may experience a life event that impacts their credit file. At Chorley Building Society we offer a range of credit renew products that are available to those who have recovered from this life event, but may not meet our standard lending criteria.
“We have now introduced additional LTVs to further reflect the differing needs of clients.”
The building society has been adding to its proposition, bringing out limited company buy-to-let (BTL), holiday let, second home and later life deals earlier this year.
