"We believe that less than perfect credit shouldn’t be a complete barrier to home ownership and people deserve the opportunity to realise their life goal of finding a home."
The new options mean Aldermore can now consider those with more complex credit issues in their past, such as CCJs or defaults registered over 6 months, bankruptcy or IVA discharged for 2 years, mortgage or secured loan arrears over 3 months ago, or forced or voluntary possessions older than 3 years.
Level 2 rates start from 3.68% and level 3 rates from 4.18%, available up to 80% LTV.
According to Aldermore’s research, 38% of prospective first-time buyers were rejected for a mortgage once and 43% were rejected for a mortgage more than once. The number one reason for the rejection was credit history issues.
Recognising this, Aldermore bank has also reintroduced level 2 and level 3 in its Help to Buy: equity loan range providing greater options for first-time buyers. Level 2 rates start from 4.38% and level 3 rates from 4.88% up to 75% LTV.
Aldermore has also reduced rates and reintroduced zero product fee options across its high-LTV range.
Rates have reduced between 20-30bps on its 85% and 90% LTV products with a £999 fee, while zero fee options are now available on LTVs between 85-90% LTV with free valuations and free legals on remortgages.
Jon Cooper, commercial director of mortgages at Aldermore, commented: “Life is a long road with many experiencing bumps along the way, so it’s reasonable to expect some may have had credit blips in the past. At Aldermore, we believe that less than perfect credit shouldn’t be a complete barrier to home ownership and people deserve the opportunity to realise their life goal of finding a home.
“We’re delighted to announce our expanded range for homeowners and first-time buyers and, through our human approach to lending which enables us to consider each case on its individual merits, we can support customers in finding the right mortgage for them.”
