"Many borrowers have experienced financial challenges in recent years, and our new tiered structure, supported by smart technology, ensures that brokers can place more cases with greater confidence"
- Ashley Pearson - Loughborough Building Society
Loughborough Building Society has launched a completely redefined adverse lending proposition, designed to provide brokers with greater flexibility when placing clients with historic or ongoing credit challenges.
The new range is structured across four tiers. Standard products are available for applicants with limited or no recent adverse credit. Near-prime products cater to borrowers with minor credit issues. Credit-impaired products are designed for those with more significant historical adverse events. The credit repair tier represents the Society's highest-ranking adverse product, specifically developed to support applicants with the most recent and challenging credit events.
The new credit matrix outlines how each product tier supports borrowers with a wide spectrum of issues. These include defaults, CCJs, IVAs, DMPs, repossessions and bankruptcy. Applicants with defaults registered within the last two years or unsatisfied CCJs may still be eligible under the credit repair product. Those with older, satisfied events can often be placed into lower tiers with higher LTV options.
The society has introduced an online adverse tool to complement the launch. The tool helps brokers quickly determine product eligibility at the pre-DIP stage, enabling faster, more accurate case placement. It also helps brokers manage customer expectations from the outset.
The proposition is further strengthened by Loughborough's recently launched decision engine. The system automatically identifies adverse credit issues within an application and cascades outcomes to the appropriate tier, allowing for a more streamlined process while preserving the Society's personalised underwriting approach.
"We are proud to launch a truly comprehensive adverse lending proposition that reflects the realities of today's market," said Ashley Pearson, head of intermediaries at Loughborough Building Society (pictured). "Many borrowers have experienced financial challenges in recent years, and our new tiered structure, supported by smart technology, ensures that brokers can place more cases with greater confidence."
"By combining our online adverse tool with the intelligence of our decision engine, we're giving brokers the clarity and speed they need, while offering customers fair, responsible access to mortgage solutions that suit their circumstances."
