Specialist lender LiveMore has expanded its lending criteria, reducing the time it looks back at historic credit issues as it seeks to improve access to mortgages for borrowers with more complex financial backgrounds.
The changes mean borrowers with historic arrears, County Court Judgments (CCJs), credit defaults and Individual Voluntary Arrangements (IVAs) who have since demonstrated stable financial behaviour may now find it easier to secure finance.
LiveMore has reduced the initial assessment period for CCJs and credit defaults from three years to 18 months, while the assessment period for IVAs has also been cut from three years to 18 months.
The lender said the move is designed to help borrowers who have experienced financial difficulties in the past but are now in a position to sustain homeownership or refinance responsibly.
Leon Diamond, chief executive of LiveMore Mortgages, said: “Our purpose at LiveMore is to find solutions for people with more complex needs, and to say yes where others say no.
“By changing our lending criteria, we are assessing borrowers on their more recent financial behaviour, rather than leaving them stuck where they were previously in a time of crisis.
“We are reducing the number of automatic declines and increasing the extent of our manual underwriting, which means we can look at the individual and their personal circumstances, rather than just their credit history and provide the most appropriate products for their situation.”
The changes follow LiveMore’s recent decision to lower its minimum borrowing age to 40, reflecting what it sees as growing demand from borrowers facing more complex financial circumstances earlier in life.
The lender said longer working lives, higher levels of self-employment and changing family circumstances, including divorce, are creating affordability challenges for borrowers well before traditional later life lending becomes relevant.
Its LiveMore Mortgage Matcher platform is intended to help brokers build a broader picture of affordability by taking account of pensions, savings, investments, inheritance and other income sources.
The criteria changes also come after the launch of the lender’s LiveMore Underwriting Hero Hotline, which gives brokers direct access to an underwriter to discuss complex cases before a full application is submitted.
LiveMore said the latest enhancements form part of its wider strategy to improve access to finance for underserved borrowers and provide brokers with greater flexibility when placing more complicated cases.
