These mortgages could be an option for clients who are concerned about a poor credit rating. Rates and charges tend to be higher due to the perceived risk. However once clients are accepted for one of our Credit Repair mortgages and can prove regular payments, their credit rating will improve to enable them to consider a more competitive deal.
Affordability calculator
Find out how much your client can borrow with our affordability calculators.
Our Standard Variable Rate (SVR) is currently 7.99% variable (effective from January 1st for existing customers). There may be a limit on how low your interest rate can fall. This is called an ‘interest rate floor’. The interest rate floor applicable to your loan will be specified in your loan documentation.
The mortgages listed below move on to our Standard Variable Rate (SVR), 7.99% variable after the initial rate period (effective from January 1st for existing customers).
We will pay a gross procuration fee of 0.4% on all new introduced business and 0.3% on all product transfers. The fee is usually paid within five working days following completion. Procuration fees may vary for our recognised Clubs & Packagers.
For full repayment of a 5 year fixed product, you will pay 3% of the outstanding balance in years 1, 2, 3 & 4; 2% in year 5, plus a Closing Administration Fee (currently £100).
For overpayments of a 5 year fixed product, you will pay 3% on any amount exceeding your 20% limit in year 1, 2, 3 & 4, 2% in year 5.
For full repayment of a 2 year fixed or discounted product, you will pay 3% of the outstanding balance in the first year and 2% in the second year, plus a Closing Administration Fee (currently £100).
For overpayments of a 2 year fixed or discounted product, you will pay 3% on any amount exceeding your 20% limit in the first year and 2% in the second year.
| Loan: | Size: Minimum £50,000. Term: Minimum 5 years, Maximum 40 years. |
|---|---|
| Property: | Minimum Value: £100,000. Must be in England, Wales or Mainland Scotland, Shetland, Orkney, Arran, Bute, Skye, Harris & Lewis, Mull and Islay. We are also unable to offer a Right To Buy mortgage in Scotland. |
| All applicants: | Must be UK residents. Minimum age 18. Maximum age is 85, subject to income in retirement. |
| Income: | Household income must be at least £20,000. No minimum period of employment, but must have passed probation, or have 3 years self employment history. |
The amount we will lend will depend on the value of the property and a calculation based on income and expenditure. As a guide, we will take gross annual income and then apply a deduction for the annual amount paid towards any existing debts or other financial commitments. We apply the following multipliers to the amount remaining:
| Income After Deductions | Sole Borrower | Joint Borrowers |
|---|---|---|
| £20,000-£50,000 | 4.5x | 4.5x |
| Over £50,000 | 5.0x | 5.0x |
These multiples are for guidance only and do not guarantee that we will lend the amount indicated. We will carry out a full assessment of your income and expenditure to ensure that you can afford your mortgage both now and in the future.
| Underwriting: | We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for your case will depend on your circumstances and our assessment of the risk. |
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Credit Criteria
| Criteria | High LTV | Standard | Credit Repair |
| LTV | 95% | 80% | 70% |
| Defaults | None in the last 6 years | Satisfied over 2 years | Maximum £2,500 registered over 2 years |
| CCJ’s / Sheriff Court Decree (Scotland) | None in the last 6 years | Maximum £500 registered in last 3 years, satisfied at application | Maximum £2,500 registered over 2 years |
| Mortgage/Rent Arrears | None in the last 3 years | Maximum status 1 in the last 2 years, satisfied for at least 12 months | Maximum status 2 in the last 2 years, satisfied for at least 6 months |
| Unsecured Arrears (loans, credit cards, hire purchase etc.) | None in the last 3 years | Maximum status 1 in the last 2 years. (Utilities & mobiles ignored up to £250) | Maximum status 2 in the last 2 years. (Utilities & mobiles ignored up to £250) |
| Bankruptcy/IVA/Sequestration/Protected Trust Deed (Scotland) | None in the last 6 years | Satisfied over 3 years | Satisfied over 2 years |
| Pay day loans | None in the last year | None in the last year | None in the last year |
| DRO/DPP (Scotland)/DMP | None in the last 6 years | Satisfied over 2 years | Satisfied over 1 year |
Please ask for a personalised illustration for your own particular requirements.
Mortgage Insurance
Mortgage Conditions
Mortgage Conditions Scotland
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