Skip to content Sitemap

Credit Repair mortgages

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.


Variable mortgages

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.

Product name
Credit Repair 2: 2 year discount

Product code: RDD175
Initial rate
6.89%
Discount from SVR
1.5%
Overall cost for comparison
8.2% APRC
Max LTV %
70%
Product fee
£999

Fixed rate mortgages

The mortgages listed below move on to our Standard Variable Rate (SVR), 8.39% (variable) after the initial rate period.

Product name
Credit Repair 1: 2 year fixed

Product code: RDF180
Initial rate
5.99%
Overall cost for comparison
7.8% APRC
Max LTV %
80%
Product fee
£999
Product name
Credit Repair 1: 5 year fixed

Product code: RDF174
Initial rate
5.39%
Overall cost for comparison
7.2% APRC
Max LTV %
80%
Product fee
£999
  • Repayment type
    Interest only and repayment options available
  • Key features
    • Availability – Purchase & Remortgage up to 80% Loan To Value (LTV) for Credit Repair 1 or 70% Loan To Value (LTV) for Credit Repair 2. Minimum deposit of 20% for Credit Repair 1 or 30% for Credit Repair 2 required.
    • Flexibility – Overpayments up to 20% of the capital balance as at 1st January are allowed in each calendar year without penalty.
    • Portable.
  • Early repayment

    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.

  • Product fees
  • Lending criteria

    Residential Lending Criteria and Information

    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 DeductionsSole BorrowerJoint Borrowers
    £20,000-£50,0004.5x4.5x
    Over £50,0005.0x5.0x

    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

    CriteriaResidentialCredit Repair 1Credit Repair 2
    LTV95%80%70%
    DefaultsNone in the last 6 yearsMaximum 3 defaults satisfied over 2 years*Maximum 3 defaults registered over 2 years*
    CCJ’s / Sheriff Court Decree (Scotland)None in the last 6 yearsMaximum 3 CCJs satisfied over 2 years**Maximum 3 CCJs registered over 2 years**
    Mortgage/Rent ArrearsNone in the last 3 yearsMaximum status 1 in the last 2 years, satisfied for at least 12 monthsMaximum 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 yearsMaximum status 1 in the last 2 yearsMaximum status 2 in the last 2 years
    Bankruptcy/IVA/Sequestration/Protected Trust Deed (Scotland)None in the last 6 yearsSatisfied over 3 yearsSatisfied over 2 years
    Pay day loansNone in the last yearNone in the last yearNone in the last year
    DRO/DPP (Scotland)/DMPNone in the last 6 yearsSatisfied over 2 yearsSatisfied 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.

  • Useful stuff

    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.

How to apply

How To Submit A Case

Follow our step by step guide

Visit

Contact us

Live Chat

Talk to us

Live Chat

New enquiries

01225 475729

Call us