Hinckley & Rugby Building Society has launched a specialist mortgage range for borrowers who have rebuilt their finances after experiencing credit difficulties.
The Credit Renew range, available through Hinckley & Rugby for Intermediaries, will consider applicants with county court judgments (CCJs), defaults, debt management plans (DMPs) and missed payments.
It forms part of a two-tier credit proposition alongside Credit Assist, the lender’s renamed Credit Flex range.
Credit Assist is intended for borrowers with less serious historic credit issues, while Credit Renew covers more complex cases in which applicants have re-established their financial stability.
Applications will be assessed individually by an underwriter, with no automated credit scoring at the decision in principle stage.
PRODUCTS AND PRICING
The range has launched with two products for purchases and remortgages, both available up to 75% loan-to-value and offering £250 cashback.
A two-year fixed-rate mortgage is priced at 6.54%, while a two-year discount mortgage has a variable rate of 5.94% — 0.95 percentage points below the society’s homeowner variable rate.
Both products have an £800 completion fee and a valuation fee.
EXPANDED CREDIT CRITERIA
Credit Renew will accept a satisfied CCJ of up to £2,500 registered within the past 24 months, compared with a limit of £500 under Credit Assist. Applicants must not have had a CCJ registered during the previous three months.
The range will also consider debt consolidation. DMPs do not need to have been satisfied, provided the arrangement has been running for at least 12 months and has been conducted satisfactorily.
Other circumstances covered by the society’s expanded credit matrix include individual voluntary arrangements, missed mortgage payments and defaults.
Christopher Holmes, senior product and proposition manager at Hinckley & Rugby Building Society, said: “Credit Renew has been created for borrowers who may have faced financial difficulty in the past but are now in a stronger and more stable position.
“Life events such as unemployment, illness or relationship breakdown can affect anyone and may lead to significant, but often temporary, financial challenges.
“Many people work hard to rebuild their financial stability, and we believe they should have access to a considered lending approach that looks at their current circumstances, not just their credit history.
“By combining broader criteria with individual underwriting, Credit Renew gives brokers more flexibility and helps us respond to the real needs of today’s borrowers.”
