Tipton & Coseley Building Society has launched Credit Plus, aimed at residential borrowers with light credit impairments who might otherwise be excluded from high street lending.

The West Midlands mutual said the product would support those with “past credit blips” who are seeking to purchase a home or refinance, but do not necessarily need to resort to specialist or adverse credit lenders.

By applying more flexible criteria, the society claims Credit Plus offers a competitive alternative to specialist lending, while still sitting firmly within the mainstream.

Initial pricing begins at 5.44% for a two-year discounted mortgage, available up to 80% loan to value, with an arrangement fee of £999.

Jason Newsway (pictured), chief commercial officer at the Tipton, said the move recognised the increasingly common nature of minor credit events among consumers.

“Brokers and their customers shouldn’t feel compelled to turn to specialist lenders just because of a slightly imperfect credit history,” he said.

“With rising living costs and the unpredictability that life can throw at us, occasional credit events are becoming more commonplace. As a result, certain customers may find themselves unfairly excluded from mainstream finance while they work towards achieving a more stable position.”

All cases are to be assessed individually under the Tipton’s manual underwriting process, allowing underwriters to factor in personal circumstances that automated decisions might overlook.

NEW RANGE AHEAD

The society also confirmed plans to introduce a further product range, Criteria Plus, in the coming months. These mortgages will cater to borrowers with more complex income profiles or those purchasing unusual property types.

According to Newsway, the development of the lender’s product range reflects a deliberate strategy to address gaps in the market created by increasingly rigid mainstream criteria.

“Having a wider choice of products, including the addition of Credit Plus, means we’re presenting brokers and their customers with a viable mainstream lending solution,” he said.

“Regional building societies such as ours can bridge the gap between high street and specialist lenders for customers with minor credit issues, yet we’re often overlooked.”