The products are available for clients who do not meet the lender’s mainstream criteria due to a slight impaired credit history and are available for remortgages and purchases only. They are not available on buy-to-let deals.
The products are available to those with one or more CCJ in the last two years with a value of no more than £2,000, or where the most recent CCJ is more than two years old and the total is no more than £5,000. Defaults of up to £5,000 and two months’ arrears within the last six months mortgage payments are also permitted.
Bankrupt clients and those who have had their property repossessed or have an Individual Voluntary Arrangement (IVA) will not be accepted.
The products range from two, three and five-year fixed rate deals at a rate of 5.84 per cent at up to 80 per cent loan-to-value for loans between £25,000 and £750,000. A fixed rate plus mortgage is also available at a rate of 6.04 per cent, and there is also a two-year tracker option available at 0.69 per cent above Bank Base Rate. There is a £795 product fee on the range and proc fees are 0.65 per cent.
A spokesperson for C&G said: C&G and Lloyds TSB have for some time been doing some near-prime lending, albeit on a small scale. In recent months we have developed products – now available through mortgage intermediaries – for people with previous minor credit problems who wouldn’t meet some aspects of our standard credit scoring criteria.”
Commenting on the move, Alan Lakey, partner at Highclere Financial Services, said: “C&G is the first truly mainstream lender to dip its toe in the near-prime water and I think it is a very good move. With the slight proviso of credit scoring, this looks like a good offering. Product rates are competitive and there are plenty of cases where many people would fit the bill.”
