Hinckley & Rugby for Intermediaries has relaxed the criteria on its Credit Flex mortgage product aimed at borrowers who have adverse credit histories.  

These loans cater to customers with county court judgements, debt management plans, individual voluntary arrangements and payday loans — as well as those who have missed payments on utility bills, credit cards, mortgages or secured loans.    

The mutual’s broker-only arm says its amendments “simplify underwriting requirements, and in many cases extends criteria to cover a wider range of borrowers”.  

Its changes include:  

• Credit card, current account, utility payments – 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, would not lend to borrowers who had taken out a payday loan in the previous 12 months, this has now been cut to a six-month period  
• Mortgage payments — 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 over a two-year period  
• County court judgements — Previously one judgement was allowed in the prior two-year period, up to the value of £250. This is now extended to two judgements over a three-year period, with a total value of £500    

Hinckley & Rugby Building Society senior product and proposition manager Christopher Holmes says: “The Credit Flex mortgage offers an affordable, flexible solution to those with previous credit problems, who are often rejected by mainstream lenders.”