Vernon Building Society has launched a new credit repair mortgage range. The range is designed to help borrowers who have experienced historic credit issues but are now in a stable position and ready to move forward.
The range comprises three products available for both purchase and remortgage: A three-year 2.44% discount at 5.16% up to 85% LTV with a £499 fee (tier 1); a three-year fixed rate at 5.29% up to 85% LTV with a £999 fee (tier 1); and a five year fixed rate at 5.49% up to 80% LTV with a £999 fee (tier2).
The new products align with updated lending policy criteria and introduce a new two tier structure above the Vernon’s standard prime criteria, depending on the extent of previous credit problems. Tier 2 can accommodate more severe or recent historic issues than Tier 1.
The Credit Repair criteria enables the Vernon to take a flexible, case by case view across a wide range of previous credit issues, including arrangements to pay, missed payments on consumer credit, loan and mortgage arrears, payday loans, defaults, satisfied CCJs up to £500 in the last 36 months, active or recently satisfied debt management plans, and historic IVA, bankruptcy, DRO or repossession.
Different levels of consideration apply under each tier, giving intermediaries clearer routes for placing cases that fall just outside prime.
Commenting on the range Vernon Building Society head of mortgage and savings distribution Brendan Crowshaw said: “Credit challenges are no longer a niche issue. We’re seeing more applicants with some form of historic blip on their record, from younger buyers and the self-employed through to those who have simply had a tough few years financially.”
