New products target borrowers with impaired credit histories
Two mutual lenders, Chorley Building Society and Tipton & Coseley Building Society, have both broadened their specialist mortgage offerings, launching new products aimed at borrowers with past credit issues.
Chorley Building Society has added four fixed rate products to its existing Credit Renew range, which previously included only discount options. The expanded range now includes eight products.
Under the Credit Renew 1 range, Chorley has introduced two-year fixed rates at 5.89% up to 60% loan-to-value (LTV) and 6.19% up to 90% LTV. The Credit Renew 2 options include a two-year fix at 5.99% up to 60% LTV and 6.29% up to 70% LTV.
“We’re really pleased to be able to introduce fixed rate mortgage products into our Credit Renew range,” said Liz Pearson (pictured left), head of operations at Chorley Building Society.
“We received broker feedback that clients, who are eligible for these specialist lending types, are often looking for a fixed rate to support them with managing their budget and rebuilding their credit profile, and so we’ve worked hard with our product team to introduce these four new products into our range.”
Meanwhile, Tipton & Coseley Building Society has launched Credit Plus, a new mortgage option for those who have experienced previous credit blips. The product starts from 5.44% for a two-year discount mortgage at up to 80% LTV, with a £999 arrangement fee.
The Tipton also plans to launch Criteria Plus mortgages later this year, designed for borrowers with complex income types or unconventional property purchases.
“Brokers and their customers shouldn’t feel compelled to turn to specialist lenders just because of a slightly imperfect credit history,” said Jason Newsway (pictured right), chief commercial officer at Tipton & Coseley Building Society. “With rising living costs and the unpredictability that life can throw at us, occasional credit events are becoming more commonplace.
“As a result, certain customers may find themselves unfairly excluded from mainstream finance while they work towards achieving a more stable position. All of our lending decisions are made using a personalised underwriting approach, with a tailored assessment of every case to factor in the borrower’s specific circumstances.
“Having a wider choice of products, including the addition of Credit Plus, means we’re presenting brokers and their customers with a viable mainstream lending solution. Regional building societies such as ours can bridge the gap between high street and specialist lenders for customers with minor credit issues, yet we’re often overlooked.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
