Chorley rearranges loans for borrowers with lower credit scores
Chorley Building Society has strengthened and updated its line of credit renewals for customers with lower credit scores.
The mutual says there are now two loan-to-value products available in each credit renewal category, with an improved discount that lowers the initial interest rate.
The company says its “Credit Renew range of mortgages are designed for customers who are not in credit difficulty but have recently experienced a life event from which they have recovered and which has impacted their profile. credit, which means they do not meet our standard lending criteria”.
Examples of criteria include customers who may have more than one county court judgment against them in the last three years, “not relating to a mortgage, loan or revolving credit”. The total of all judgments must not exceed £500.
Also, borrowers may be subject to more than two defaults in the last two years, “not related to a mortgage, loan or revolving credit regardless of the total amount”.
The lender says these products are divided into Category One and Category Two, “which recognizes the different stages customers may be at, in their recovery from life events.”
Its new Credit Renew range is as follows:
Renewal 1-75% LTV – discount over two years – currently 2.99% (3.00% discount from standard variable rate)
Renewal of credit 1 to 85% LTV – discount over two years – currently 3.69% (2.30% discount on SVR)
Renew 2 Credit – at 70% LTV – two year discount – currently 3.49% (2.50% discount on SVR)
Renew 2 Credit – at 80% LTV – two year discount – currently 3.99% (2.00% discount on SVR)
Liz Pearson, Head of Loans at Chorley Building Society, says: “Our underwriting team has extensive experience with loan renewal cases. They are very happy to advise brokers on any cases they may have that may fall under this specialist loan. »