Hinckley & Rugby updates Credit Flex mortgage criteria

It aims to support borrowers with adverse credit histories

Hinckley & Rugby updates Credit Flex mortgage criteria

Hinckley & Rugby for Intermediaries has updated the criteria for its Credit Flex mortgage product, aimed at supporting borrowers with adverse credit histories, including those with county court judgments (CCJs), debt management plans, individual voluntary arrangements (IVAs), payday loans, and missed payments on utility bills, credit cards, mortgages, or secured loans.

The updated criteria simplify underwriting requirements and extend coverage to a broader range of borrowers.

Under the enhanced Credit Flex mortgage criteria, borrowers can now be up to five months late on credit card, current account, and utility payments over the previous 12-month period, up from three months late.

The exclusion period for borrowers who have taken out a payday loan has also been reduced from 12 months to six months.

Borrowers who were up to two months late with mortgage repayments over the past two years are also now eligible, an extension from the previous one-month late limit.

The lender now allows for two CCJs over a three-year period, with a total value of £500, compared to the previous one CCJ over two years with a value of £250.

Hinckley & Rugby said the changes reflect the ongoing challenges in the market and are in response to broker feedback.

“We want to make the broker’s path to application as smooth as possible by cementing the challenges we most commonly see into our published lending criteria,” said Christopher Holmes (pictured), senior product and proposition manager at Hinckley & Rugby Building Society. “In a fast-changing market, this will mean more brokers getting faster decisions for their clients.

“At H&R, we know a one-size-fits all approach to lending fails to meet the needs of many homeowners today. Most lenders want an applicant’s circumstances to fit one of their mortgages — but our range of Flex products are designed to be adaptable to meet the client's needs.

“The Credit Flex mortgage offers an affordable, flexible solution to those with previous credit problems, who are often rejected by mainstream lenders. The enhanced criteria means that more borrowers will be able to access this product and benefit from the society’s competitive rates and high service standards.”

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