West One Loans has revamped its residential criteria to reach a broader range of borrowers by introducing two new credit tiers, Premier and Platinum.
These tiers are aimed at those who may have historical credit issues or complex income requirements.
The new tiers will sit alongside the existing Prime Plus, Prime, and Near Prime options.
The Premier plan will begin at 5.89%, while the Platinum tier will start at 5.99%, both featuring five-year fixed rates.
Lower 2-year fixed-rate mortgages will also be available from 6.05% when the products launch on Friday 22nd November.
Each of the lender’s five credit tiers will have its own maximum LTV, with the Premier tier offering the highest at 95% and Near Prime at 75%.
The maximum LTV for the Prime product will increase to 80%.
Self-employed borrowers with at least one year of trading can now qualify for the Prime Plus tier, which offers LTVs of up to 85%, previously limited to those with two years of proof of income.
West One is improving criteria for borrowers with unsecured arrears in the new Premier and Platinum plans.
Starting Friday, borrowers with a maximum of one missed payment on unsecured accounts in the past 12 months can borrow up to 95% LTV.
Those with up to two missed payments can borrow up to 90% LTV.
The Prime Plus plan will also remove restrictions on missed payments for unsecured accounts, allowing LTVs up to 85% with satisfactory explanations.
Changes also extend to borrowers with CCJs and defaults, now including options for those with small unsatisfied CCJs under £500 across all products.
Borrowers with a missed mortgage payment over six months ago can now apply for the Prime Product, offering LTVs up to 80%.
The lender will consider payday loans taken out more than 12 months ago for the Prime Plus plan and those taken out over six months ago for the Prime plan.
Improved criteria will also benefit borrowers using affordable housing schemes like Shared Ownership and Right to Buy.
The lender has set a fixed arrangement fee of £1,795 across the range, particularly helpful for those seeking larger loans.
Both the number of fees-assisted products and those with no arrangement fee will increase.
Marie Grundy, managing director of residential mortgages and second charges at West One Loans, said: “This is one of the most significant set of changes we have made to our range since we entered the residential market a little over two years ago.
“By introducing two new credit tiers and more accommodative criteria for those borrowers with less than a perfect credit profile, we will be able to help an even greater number of customers who may fail to meet the criteria of High Street lenders or who have complex income requirements.
Grundy added: “As an intermediary-only lender, brokers are the lifeblood of our business.
“And while we believe these changes will provide valuable solutions to borrowers struggling to gain access to finance, they will also make navigating our range far simpler for advisers, freeing them up to do what they do best – provide good quality advice to their clients.
“We said at the start of this year that we would overhaul our range throughout 2024 in a bid to become the lender of choice in this area of the market – and we have.
“But we have plenty of other additions and enhancements to come, so watch this space.”
