Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Tipton & Coseley BS Expands Credit Plus Range for Complex Credit Borrowers
Tipton & Coseley Building Society has expanded its Credit Plus range to cover more borrowers with complex credit histories. The revised range now accepts applicants who have experienced arrears, late payments, county court judgments (CCJs), debt management plans (DMPs) and defaults.
The Credit Plus range launched last year as an alternative to specialist lending, aimed at people who fell outside mainstream criteria because of minor credit issues. The expanded offering sits under a second tier within the range.
Rates and product details
Rates start from 5.47% for a Tier 1 two-year discount mortgage at 80% loan to value (LTV) with a £1,499 fee. The corresponding Tier 2 product carries a rate of 5.84% with a £999 fee. Each offering also has a fixed rate alternative, also at 80% LTV, and the society offers remortgage products through the Credit Plus range.
Manual underwriting approach
Andy Millard, head of mortgage distribution at the Tipton & Coseley Building Society, said applicants' credit histories are becoming increasingly challenged across the UK because of rising living costs. Not every client fits the standard mould, he noted, but that shouldn't exclude them from pursuing homeownership or leave them reliant on specialist adverse credit lenders, where pricing is often prohibitive.
Millard added that the society manually underwrites each case and takes a bigger picture approach, looking beyond single blips or incidents and factoring in people's overall financial circumstances. With broader criteria across Credit Plus and distinct product tiers, he said, the society can assist more borrowers in this segment and help brokers present competitive choices to their clients.
What this means for agents and landlords
For letting agents and inventory clerks working with landlords and tenant-purchasers, the expansion of mainstream-adjacent lending to borrowers with CCJs, defaults and DMPs may widen the pool of applicants able to secure mortgages without turning to higher-priced specialist adverse credit lenders. The availability of remortgage products through the range may also be relevant to existing landlords reviewing their borrowing.
Source: Mortgage Solutions