Its adverse lending range is now available across its standard products – for borrowers with limited or no recent adverse credit – and near prime, for borrowers with minor credit issues. It is also available across its credit impaired tier – for people with more significant, historical adverse credit – and credit repair criteria, for people with more recent and challenging credit events.
Loughborough Building Society has varying levels of eligibility for borrowers with defaults, county court judgments (CCJs), individual voluntary agreements (IVAs), debt management plans (DMPs), and those who have experienced repossessions or bankruptcy.
For example, its credit repair product will be open to borrowers with defaults in the last two years or unsatisfied defaults, while applicants with older, satisfied events could be considered for products with lower tiers and higher loan-to-value (LTV) options.
The mutual has also launched an online adverse tool to help brokers determine which product will suit their clients at the pre-decision in principle (DIP) stage.
Loughborough Building Society said this would also complement its recently launched decision engine, which automatically identifies adverse credit issues in an application and processes outcomes to the appropriate tier. The mutual said this would allow for a more streamlined process.
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Ashley Pearson (pictured), head of intermediaries at Loughborough Building Society, said: “We are proud to launch a truly comprehensive adverse lending proposition that reflects the realities of today’s market. Many borrowers have experienced financial challenges in recent years, and our new tiered structure, supported by smart technology, ensures that brokers can place more cases with greater confidence.
“By combining our online adverse tool with the intelligence of our decision engine, we’re giving brokers the clarity and speed they need, while offering customers fair, responsible access to mortgage solutions that suit their circumstances.”
