The society said the new operation would give brokers more flexibility and support.

The new range is structured across four tiers: • Standard products – for applicants with limited or no recent adverse credit • Near prime – for borrowers with minor credit issues • Credit impaired – for those with more significant historic adverse • Credit repair – the Society’s highest-ranking adverse product to support applicants with the most recent and challenging credit events

The society’s new credit matrix outlines how each product tier supports borrowers with a wide spectrum of issues, including defaults, CCJs, IVAs, DMPs, repossessions and bankruptcy.

For example, applicants with defaults registered within the last two years or unsatisfied CCJs may still be eligible under the credit repair product, while those with older, satisfied events can often be placed into lower tiers with higher LTV options.

The Loughborough has also introduced an online adverse tool, helping brokers determine product eligibility before the decision in principle stage.

The building society has also launched a decision engine which automatically identifies adverse credit issues within an application and signposts the case to the appropriate tier.

Loughborough Building Society head of intermediaries Ashley Pearson 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.”

Research from Shawbrook last month found that a third of adults struggle to get a mortgage, and only one in 10 borrowers with adverse credit histories are confident of being approved.