Kensington Mortgages has launched a ‘residential options’ mortgage range, eligible for customers who have had one secured arrears in the last 24 months (none in the last three months) and unsecured arrears greater than six months old.
Customers can still qualify if they have one CCJ in the last 24 months (zero in the past six months) and one default in the last 24 months (none in the last six months).
Ray Boulger, senior technical manager at John Charcol, said: “It’s helpful we’re seeing more lenders offering this. The market is getting better for those with credit blips and it’s good to see an improvement in the criteria for this and more competition in this area.
“I think the key is although some people may have had issues in the past, many have no recent deterioration in their credit status in the last six months to a year or two years. It shows they’ve dealt with it and it’s become more acceptable for lenders to look at these borrowers.”
Kensington will be offering loan-to-values up to a maximum of 85%, with a maximum loan of £1m at 75% LTV, including for first-time buyers on part of the range.
2, 3 and 5-year fixed rates will be offered, with standard rates starting at 3.84% for a 2-year fixed rate at 75% LTV.
Craig McKinlay, sales and marketing director at Kensington Mortgages, said: “At Kensington, our focus is, and always has been, to help Britain’s underserved borrowers including those who have had some recent credit blips and find it a challenge to find a mortgage.
“These latest changes to our mortgage proposition reinforce our commitment to the growing specialist lending market as we reach out to a wider customer base and provide more flexibility for borrowers with complex incomes.
“I’m confident that the introduction of our options range will be received positively by intermediaries.
“What’s more, these are the continuation in a series of announcements that we at Kensington are excited to be sharing over the coming months.”