Encountering clients with minor credit defaults is becoming increasingly common in today’s mortgage market. With economic pressures mounting, missed payments or slight credit blips are affecting a growing number of borrowers. However, while these financial hurdles may seem like roadblocks, there are still viable mortgage options available.
For brokers, one of the key challenges is identifying a lender willing to work with borrowers who have a history of minor credit issues. Many high street lenders rely heavily on automated underwriting, which often dismisses applications with even the smallest credit imperfections. As a result, brokers are left with limited choices, and borrowers struggle to switch lenders due to the impact on their credit score.
At Mansfield Building Society, we understand that every borrower’s situation is unique. Instead of making decisions solely based on a credit score, we take a holistic approach by manually assessing each application. This allows us to gain a deeper understanding of a borrower’s circumstances, ensuring we make fair and informed lending decisions.
Not all missed payments or credit blips indicate persistent financial difficulty. Many are temporary setbacks due to life events such as a job change, relationship breakdown, or even global events like the Covid-19 pandemic. By considering the bigger picture, we can provide practical solutions to help borrowers get back on track.
Practical mortgage solutions
Our credit repair mortgage range is specifically designed to help borrowers who do not meet mainstream lending criteria. Whether a client has experienced a minor blip or has a more complex credit history, including County Court Judgments, bankruptcy, or an active debt management plan, we provide mortgage solutions to support their recovery. This offering allows borrowers to access mortgage finance while working towards improving their financial situation.
The credit repair mortgage range offers products up to 70% loan-to-value and includes features such as capital raising, debt consolidation, and transfer of equity. By offering this level of flexibility, borrowers can take control of their financial stability while accessing mortgages that align with their needs.
Flexible lending for a range of borrowers
In addition to our credit repair range, we also offer Versatility and Versatility Plus mortgage products, which cater to other borrowers with complex financial backgrounds and credit issues less severe than our Credit Repair criteria.
These products have been developed for applicants who may also have unusual income sources, complex employment structures, or property types that do not fit traditional lending criteria.
By pricing appropriately for risk from Prime to Versatility and eventually Credit Repair, we can take a fair and even-handed approach while accommodating a range of borrower circumstances.
Positive outcomes for borrowers who need support
Given the ongoing affordability challenges faced by many borrowers, it is vital that lenders adopt a pragmatic approach. Each case should be considered on its own merits rather than applying rigid criteria that may exclude deserving applicants.
By partnering with lenders that offer a personal underwriting approach and accommodating criteria, brokers can help clients overcome financial setbacks and move toward long-term stability.
Understanding individual circumstances, rather than relying solely on credit scores, allows us to provide meaningful financial solutions and contribute to positive outcomes for borrowers who need support the most.
