BM is looking to determine the ability to repair credit for borrowers who have been with the lender for at least two years. The aim of getting them up to prime status is dependent upon demonstrating the sufficient payment capabilities and the amount of original adverse credit.
Tim Hague, director of BM Solutions, explained that while direct propositions around credit repair are in the marketplace, he felt the initiative is the first based in conjunction with brokers.
He said: ‘This is a viable alternative to remortgaging. We have worked hand-in-hand with brokers developing and working through this initiative and the feedback we have received has been very positive. We are rolling this out over an initial three-month period so that the ball is in the intermediary court to gauge interest with the aim of it being a long-term commitment. The proof of the pudding will be in the eating.”
“Both consumers and intermediaries will benefit from this relationship. Consumers will obviously benefit as we are helping them towards prime status and the broker will extend and improve their client relationship and retention. We aren’t guaranteeing full prime – that is dependant upon a number of factors and has to be looked at in a responsible way,” he added.
Thomas Dickson, partner at Dickson Lishman Prince, said: “Anything that helps clients determine and repair credit has to be applauded.”
