Loughborough Building Society has reshaped its adverse lending proposition in an effort to give brokers clearer pathways for clients with historic or ongoing credit issues.

The mutual has introduced a four tier structure that distinguishes between borrowers with limited adverse and those with more complex challenges.

The tiers span standard products, near prime, credit impaired and a new credit repair category aimed at applicants with the most recent or difficult credit events.

The society’s credit matrix sets out how a wide range of issues, including defaults, CCJs, IVAs, DMPs, repossessions and bankruptcy, will be treated. Borrowers with recent defaults or unsatisfied CCJs may be considered under the credit repair tier, while applicants with older, satisfied events may qualify for lower tiers with access to higher LTVs.

As part of the redesign, the Loughborough has launched an online adverse tool to help brokers gauge product eligibility before a DIP. The tool is intended to speed up case placement and provide early clarity for customers.

The proposition is underpinned by the society’s decision engine, which flags adverse credit within applications and automatically aligns cases to the relevant tier. The lender said the system retains scope for personalised underwriting despite the move towards a more automated process.

TECHNOLOGY AND UNDERWRITING

Ashley Pearson, head of intermediaries at Loughborough Building Society, said: “We are proud to launch a truly comprehensive adverse lending proposition that reflects the realities of today’s market.

“Many borrowers have experienced financial challenges in recent years, and our new tiered structure, supported by smart technology, ensures that brokers can place more cases with greater confidence.

“By combining our online adverse tool with the intelligence of our decision engine, we’re giving brokers the clarity and speed they need, while offering customers fair, responsible access to mortgage solutions that suit their circumstances.”