"These refinements, along with the recent rate reductions, are about making sure our proposition evolves with the market. Brokers are dealing with an increasingly complex client base, and it’s our job as a specialist lender to adapt and support them"
- David Binney - Norton Home Loans
Norton Home Loans, the specialist intermediary-only mortgage lender, has introduced a series of criteria enhancements across its first and second charge product range, aimed at improving access for customers with complex credit histories, limited deposits, or non-standard income.
The updates include allowing Automated Valuation Models (AVMs) on Right to Buy (RTB) and purchase applications up to 80% loan-to-value (LTV), depending on confidence levels. Applications exceeding 80% LTV or those not meeting confidence levels will continue to require a full physical valuation.
Further changes include a reduction in the required conduct period for Debt Management Plans (DMPs). Satisfactory performance is now accepted after six months instead of twelve.
Support for first-time buyers has also been strengthened. Norton Home Loans now requires a minimum credit score of 300 for all applicants and a £300 surplus across the overall case. Day-one referrals will not be required if these criteria are met.
These enhancements are intended to help brokers working with clients who do not meet the profile of high street lenders. This includes borrowers with minor credit issues, variable income, or existing financial arrangements that limit their mortgage options.
In addition, interest rates have been reduced by up to 1.4% across all lending plans following the recent Bank of England Base Rate movement. The changes aim to give brokers more competitive solutions for clients with non-standard circumstances.
David Binney, head of sales at Norton Home Loans (pictured), said: “We’re continuing to see strong and consistent demand from borrowers who don’t fit the traditional mould of a high street customer. That might mean borrowers with a minor credit issue, variable income, or historic financial arrangements such as a Debt Management Plan that’s now well under control. We’ve implemented this package of criteria enhancements to remove some of the unnecessary friction that prevents those cases from progressing."
"For example, by shortening the DMP conduct period and allowing AVMs on Right to Buy and purchase applications, we’re reducing the number of small but time-consuming hurdles that can hold a case up for weeks. Similarly, the updates for first-time buyers are designed to simplify the process and give brokers more confidence at the point of recommendation."
"These refinements, along with the recent rate reductions, are about making sure our proposition evolves with the market. Brokers are dealing with an increasingly complex client base, and it’s our job as a specialist lender to adapt and support them.”
