Hinckley & Rugby for Intermediaries has updated the criteria on its Credit Flex mortgage product, with changes effective from today (19th June).
The flexible mortgage product was designed to meet the needs of borrowers with an adverse credit history, including those with CCJs, debt management plans, IVAs, payday loans, and missed payments on utility bills, credit cards, mortgages or secured loans.
The criteria simplify underwriting requirements, and in many cases extends to cover a wider range of borrowers.
For credit card, current account, and utility payments, the lender previously accepted borrowers who were up to three months late with payments over the previous 12 month period.
The new criteria will accept borrowers whose payments are up to five months late over this timeframe.
For payday loans, Hinckley & Rugby would previously not lend to borrowers who had taken out a payday loan in the previous 12 months; this has now been reduced to six months.
For mortgage payments, the society will now consider borrowers who were up to two months late with repayments over the previous two years, where previously this was restricted to payments that were only one month late, again over a two-year period.
Previously, one CCJ was allowed in the prior two-year period, up to the value of £250; this has been extended to two CCJs over a three-year period, with a total value of £500
The criteria updates reflect ongoing challenges in the market and have been made in response to feedback from brokers.
Christopher Holmes, senior product and proposition manager at Hinckley & 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 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.”
