Specialist bank Aldermore has launched two lending tiers across its standard range of residential mortgages.
The new tiers, Standard Level 2 and 3, mean the bank will now consider customers if they have county court judgements or defaults registered over six months, bankruptcy or IVA discharged for two years, mortgage or secured loan arrears over three months ago and forced or voluntary possessions older than three years.
The new tiers also offer brokers an immediate lending decision and Aldermore’s system will display the lowest possible rate for the customer.
Charles McDowell, commercial director for mortgages at Aldermore, said the move was aimed at supporting more mortgage customers.
He said: "We understand that people’s situations can be complex but we are passionate about supporting the nation’s homeowners. At Aldermore, our human approach to lending enables us to consider each case on an individual basis so we can support those people with small credit issues.
"We have worked closely with our intermediary partners to design a process that makes the journey of using our tiered products as simple and straightforward as possible for both the broker and the borrower."
The Standard Mortgage Range Level 2 offers homeloans up to 80 per cent LTV, with a product fee of £999.
The two-year fixed rate is available from 3.98 per cent, the three-year fixed rate is available from 4.08 per cent, while the five-year fixed rate is offered at 4.18 per cent.
The Standard Mortgage Range Level 3 is for up to 75 per cent LTV with a product fee of £999. The two-year fixed rate is available at 4.48 per cent , the three-year fixed rate is available at 4.58 per cent and the five-year fixed rate is at 4.68 per cent.
Ray Boulger, senior mortgage technical manager at John Charcol, said: "The adverse credit sector of the market was particularly badly hit by the credit crisis 10 years ago and even now choices for borrowers with some adverse credit are very limited and so it is really helpful to have more competition in this sector.
"Precise is one of Aldermore’s main competitors for this type of client and it is clear this is a sector where the challenger banks can be competitive."