These mortgages could be an option for clients who are concerned about a poor credit rating. Rates and charges tend to be higher due to the perceived risk. However once clients are accepted for one of our Credit Repair mortgages and can prove regular payments, their credit rating will improve to enable them to consider a more competitive deal.
Affordability calculator
Find out how much your client can borrow with our affordability calculators.
Our Standard Variable Rate (SVR) is currently 8.39% (variable).
There may be a limit on how low your interest rate can fall. This is called an ‘interest rate floor’. The interest rate floor applicable to your loan will be specified in your loan documentation.
The mortgages listed below move on to our Standard Variable Rate (SVR), 8.39% (variable) after the initial rate period.
For full repayment of a 5 year fixed product, you will pay 3% of the outstanding balance in years 1, 2, 3 & 4; 2% in year 5, plus a Closing Administration Fee (currently £100).
For overpayments of a 5 year fixed product, you will pay 3% on any amount exceeding your 20% limit in year 1, 2, 3 & 4, 2% in year 5.
For full repayment of a 2 year fixed or discounted product, you will pay 3% of the outstanding balance in the first year and 2% in the second year, plus a Closing Administration Fee (currently £100).
For overpayments of a 2 year fixed or discounted product, you will pay 3% on any amount exceeding your 20% limit in the first year and 2% in the second year.
| Loan: | Size: Minimum £50,000. Term: Minimum 5 years, Maximum 40 years. |
|---|---|
| Property: | Minimum Value: £100,000. Must be in England, Wales or Scotland. We are also unable to offer a Right To Buy mortgage in Scotland. |
| Applicant: | Age: Minimum 18, maximum is 85, subject to income in retirement. |
| Income: | Household income must be at least £20,000. No minimum period of employment, but must have passed probation, or have 3 years self employment history. |
The amount we will lend will depend on the value of the property and a calculation based on income and expenditure. As a guide, we will take gross annual income and then apply a deduction for the annual amount paid towards any existing debts or other financial commitments. We apply the following multipliers to the amount remaining:
| Income After Deductions | Sole Borrower | Joint Borrowers |
|---|---|---|
| £20,000-£50,000 | 4.5x | 4.5x |
| Over £50,000 | 5.0x | 5.0x |
These multiples are for guidance only and do not guarantee that we will lend the amount indicated. We will carry out a full assessment of your income and expenditure to ensure that you can afford your mortgage both now and in the future.
| Underwriting: | We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for your case will depend on your circumstances and our assessment of the risk. |
|---|
Credit Criteria
| Criteria | Residential | Credit Repair 1 | Credit Repair 2 |
| LTV | 95% | 80% | 70% |
| Defaults | None in the last 6 years | Maximum 3 defaults satisfied over 2 years* | Maximum 3 defaults registered over 2 years* |
| CCJ’s / Sheriff Court Decree (Scotland) | None in the last 6 years | Maximum 3 CCJs satisfied over 2 years** | Maximum 3 CCJs registered over 2 years** |
| Mortgage/Rent Arrears | None in the last 3 years | Maximum status 1 in the last 2 years, satisfied for at least 12 months | Maximum status 2 in the last 2 years, satisfied for at least 6 months |
| Unsecured Arrears (loans, credit cards, hire purchase etc.) | None in the last 3 years | Maximum status 1 in the last 2 years | Maximum status 2 in the last 2 years |
| Bankruptcy/IVA/Sequestration/Protected Trust Deed (Scotland) | None in the last 6 years | Satisfied over 3 years | Satisfied over 2 years |
| Pay day loans | None in the last year | None in the last year | None in the last year |
| DRO/DPP (Scotland)/DMP | None in the last 6 years | Satisfied over 2 years | Satisfied over 1 year |
| *Defaults cannot exceed £2,500 cumulatively | |||
| **CCJs cannot exceed £500 cumulatively | |||
Please ask for a personalised illustration for your own particular requirements.
Mortgage Insurance
Mortgage Conditions
Mortgage Conditions Scotland
This section is for use by professional Intermediaries only. If you are a customer please visit our Mortgage section.
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