It launches new credit tiers and eases lending policy
Specialist lender West One Loans has unveiled two new credit tiers as part of a broader overhaul of its residential mortgage range, aiming to support more borrowers who may struggle to secure loans from mainstream lenders.
The specialist lender’s new Premier and Platinum tiers are tailored to individuals who fall outside traditional lending criteria due to historical credit challenges, recent minor credit issues, or complex income circumstances. These options join West One’s existing Prime Plus, Prime, and Near Prime tiers.
The Premier plan offers rates starting at 5.89%, while the Platinum tier begins at 5.99%, both available as five-year fixed-rate products. Additionally, the lender has introduced lower two-year fixed-rate options starting from 6.05%. The revamped product range will launch on Friday, 22 November.
West One’s updated tiers will each have specific maximum loan-to-value (LTV) limits, with the Premier tier offering up to 95% LTV, the highest in the range, and the Near Prime tier capped at 75% LTV. The Prime tier will also see an increase, now providing loans up to 80% LTV.
The lender says the tiered system will not only accommodate a wider range of customers but will also simplify the process for brokers navigating its offerings.
West One is also introducing several significant changes to its eligibility criteria. Self-employed borrowers with at least one year of trading history can now qualify for the Prime Plus tier, with LTVs of up to 85%. Previously, self-employed applicants with less than two years of income proof were limited to 75% LTV.
Borrowers with unsecured credit arrears will also benefit from more flexible terms. Those with a maximum of one missed unsecured payment in the past 12 months can now borrow up to 95% LTV under the Premier or Platinum plans, while borrowers with up to two missed payments can access loans up to 90% LTV.
West One has further relaxed restrictions on its Prime Plus tier by removing limits on unsecured accounts with a maximum of two missed payments in the last year. Borrowers in this category can now borrow up to 85% LTV, subject to satisfactory explanations.
The lender has also updated its approach to county court judgements (CCJs) and defaults, now allowing borrowers with unsatisfied CCJs under £500 to access all its products. Additionally, applicants with one missed mortgage payment within the past year will now qualify for the Prime tier, provided the payment occurred more than six months ago, with LTVs of up to 80%.
Borrowers who have taken out payday loans will see improvements as well. The Prime Plus plan will now consider applicants with payday loans taken out more than 12 months ago (previously 24 months), while the Prime plan will allow borrowers with payday loans taken out more than six months ago (previously 12 months).
The changes extend to borrowers using affordable housing schemes, such as shared ownership and Right to Buy. Self-employed applicants with one year of trading history will now also be eligible for these schemes under the Prime Plus tier.
West One has introduced a single, fixed arrangement fee of £1,795 across its entire range, which it says will be particularly beneficial for larger loans. Additionally, the lender has expanded its “fees-assisted” options, which come with no arrangement fees.
These product and criteria changes follow recent operational improvements, including the removal of the mortgage application fee and streamlined underwriting requirements.
“This is one of the most significant set of changes we have made to our range since we entered the residential market a little over two years ago,” said Marie Grundy (pictured), managing director of residential mortgages and second charges at West One Loans.
“By introducing two new credit tiers and more accommodative criteria for those borrowers with less than a perfect credit profile, we will be able to help an even greater number of customers who may fail to meet the criteria of high street lenders or who have complex income requirements.”
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