The new product caters to borrowers with a past credit blip
Darlington Building Society has launched its Credit Lite mortgage product, designed for individuals with past credit challenges.
The new product aims to create a solution for people who have had a credit blip in the past but can evidence their willingness and ability to repay a mortgage. It is also for customers who have previously engaged with adverse credit lenders and are concluding their product terms but still face minor credit issues that mainstream lenders typically do not accommodate in a standard remortgage scenario.
Offered with a five-year fixed rate of 5.89% for up to an 80% loan-to-value (LTV), the Credit Lite mortgage allows a maximum loan amount of £500,000.
Eligibility criteria includes a maximum of two missed payments on consumer credit within the last year, provided there are none in the previous six months, up to two missed loan payments over the last three years with none in the preceding year, and one incident of mortgage or rent arrears in the past two to three years.
The product also accommodates applicants with selected resolved defaults on credit, cleared county court judgments (CCJs), debt management plans concluded at least three years prior, and individuals who have satisfactorily resolved IVAs, bankruptcies, or previous repossessions more than six years ago.
“We are pleased to announce the launch of Credit Lite – a mortgage available to those with what we are describing as ‘blips’ on their credit file,” Chris Blewitt (pictured), head of intermediary distribution at Darlington Intermediaries. “For example, an applicant could have missed a credit repayment along the way in an otherwise perfectly suitable application, with sufficient evidence of affordability and willingness to upkeep mortgage repayments.
“Darlington’s approach to lending is to make complex cases simple, and this is a prime example of that in action. By carefully assessing each application on a case-by-case basis, we can avoid the ‘computer says no’ approach taken by typical high street lenders and help to make more people’s dreams of home ownership a reality.”
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