SpecialistApr 24 2018

Hanley changes mortgage lending criteria for debtors

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Hanley changes mortgage lending criteria for debtors

Hanley Economic Building Society has implemented two major criteria changes across its near prime product range, in a bid to support more customers.

Following intermediary feedback, the society will now accept applications from borrowers who have been in a debt management plan for more than 12 months without a missed payment, and from prospective borrowers who may have missed one mortgage payment in the last 12 months.

David Lownds, head of marketing and business development at Hanley Economic Building Society, said: "Supporting customers who have had a 'life event', i.e. redundancy or a relationship breakdown, is a very mutual thing to do.

"We believe such people should still have access to a mortgage at a competitive interest rate and that is why we initially entered the near prime sector.

"Following a successful launch period we have carefully extended this range and engaged with the intermediary community to implement the kinds of criteria changes demanded by their clients.

"Our aim is to become the first alternative for intermediaries within this sector, and we are constantly striving to better support their needs and those of their clients."

Hanley Economic Building Society launched its first near prime product in September 2017. It has since built on this initial offering to now house three products within this range.

Deals start from 3.19 per cent at 50 per cent loan-to-value (LTV) with a £500 fee, increasing to 5 per cent at 70 per cent LTV with a fee of £1,250.

Advances are available up to £500,000, there is no credit scoring across the range and self-employed, as well as employed income, is allowed.

Carl Shave, director at Suffolk-based Just Mortgage Brokers, said: "Having a specialist division at Just Mortgage Brokers who solely deal with those that have experienced credit issues in the past, the Hanley Economics view to change its criteria for the better in regard to this sector of the market is a welcome addition from my view point to a niche area of the industry. 

"With many lenders still tarring clients with a history of adverse credit with the same brush, especially those with debt management plans, having a lender that is willing to consider these will hopefully give a little more light at the end of the tunnel in their search for a mortgage."

aamina.zafar@ft.com