Loughborough Building Society has launched a new adverse lending range for brokers placing clients with credit problems.
The proposition is split into four tiers: standard products for those with little or no recent adverse history, near prime for minor issues, credit impaired for more serious past events, and credit repair for applicants with the most recent and challenging circumstances.
The society’s credit matrix sets out eligibility for borrowers with issues like defaults, county court judgements (CCJs), individual voluntary arrangements (IVAs), debt management plans (DMPs), repossessions, and bankruptcy.
Those with defaults in the last two years or unsatisfied CCJs may qualify under the credit repair tier, while those with older satisfied events can access lower tiers and higher loan-to-value (LTV) options.
An online adverse tool has also been introduced, allowing brokers to check eligibility before submitting a decision in principle (DIP).
The decision engine identifies adverse issues in applications and places cases into the right tier automatically, aiming to speed up the process and maintain personalised underwriting.
Ashley Pearson, 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.”
