"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."
- Christopher Holmes, senior product and proposition manager
Hinckley & Rugby for Intermediaries has updated the criteria on its Credit Flex mortgage product.
The flexible mortgage product is designed to meet the needs of a range of borrowers with an adverse credit history. This includes borrowers with CCJs, debt management plans, IVAs, payday loans as well as those who have missed payments on utility bills, credit cards, mortgages or secured loans.
The new criteria simplifies underwriting requirements, and in many cases extends criteria to cover a wider range of borrowers. Examples of enhanced criteria include:
• Credit card, current account, and utility payments: The Society previously accepted borrowers who were up to three months late with payments over the previous 12 month period. New criteria will accept borrowers whose payments are up to five months late over this time frame.
• Payday loans: Previously Hinckley and Rugby would not lend to borrowers who had taken out a payday loan in the previous 12 months, this has now been reduced to a six month period.
• Mortgage payments: The Society will now consider borrowers who were up to two months late with repayments over the previous two years. Previously this was restricted payments that were only one month late, again over a two-year period.
• CCJs: Previously one CCJ was allowed in the prior two-year period, up to the value of £250. New criteria extends this to two CCJs over a three-year period, with a total value of £500.
Christopher Holmes, senior product and proposition manager at Hinckley & Rugby, 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 H&R 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 means that more borrowers will be able to access this product and benefit from the Society’s competitive rates and high service standards.”
