A new slate of products that are targeted at potential borrowers who have bad credit ratings due to issues such as previous indebtedness has been introduced by Precise Mortgages.
These products are designed to provide people who have problems with credit because of past county court judgements against them or debts that they are currently repaying under a payment plan with a way to secure a mortgage and get onto the housing ladder. For those who have low-level issues that affect their credit ratings, Precise Mortgages has indicated that 85% will be the top loan-to-value (LTV) available.
When it comes to borrowers with much more severe and long-term credit problems, the lender has indicated that it is planning to bring back its tier five products with LTV to a maximum of 80%.
This new slate of products will include five and two-year fixed rates and is accessible to those with existing mortgage arrears – either unsecured or secured – as well as other debts that are being addressed through repayment plans.
Adrian Moloney from OSB Group, the specialist lender that owns Precise Mortgages, told Mortgage Strategy that:
“The pandemic has undoubtedly left a mark on many customers who may be struggling to secure lending elsewhere and this range could provide a simple solution, especially for those with an impacted credit score.”
Following CeMAP mortgage advisor training, advisors are currently dealing with high numbers of clients with credit issues, so new products specifically aimed at them will be a welcome development.