These mortgages could be an option if you are worried about past credit issues. Rates and charges tend to be higher due to the perceived risk. However once you’ve found a solution and can prove regular payments, your credit rating will improve and you can consider a more competitive deal.
Mortgages are secured against your home. You could lose your home if you do not keep up payments on your mortgage.
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Find out how much you can borrow with our affordability calculators.
Monthly payments calculator
Use the calculator to find out what your monthly payments might be based on the mortgage product and the type and term of your borrowing.
Mortgage details
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This is the maximum amount based on the information you provided. Your mortgage adviser will take you through the application process and will calculate the amount you can afford to borrow based on your income after the deduction of those expenses and commitments. Further restrictions may apply for specialist products.
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.
Representative example: A mortgage of £320,000.00 taken out for a period of 21 years on a repayment basis.
Monthly instalments: £2,410.03 per month for 23 months, followed by £2,517.70 per month for 36 months, and finally £2,682.58 per month for 192 months.
Total amount to be repaid: £662,712.25
Total amount of credit: £320,000.00
The total amount payable includes a valuation fee of £490.00, a product fee of £999.00 and a closing fee of £100.
The overall cost for comparison is 8.2% representative APRC.
This example is based on our Credit Repair 2, 2 year 1.5% discount mortgage. It is based on our current Standard Variable Rate of 8.39% with no fees added to the mortgage.
Please ask for a personalised illustration for your own particular requirements.
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.
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 | |||
| 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. |
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