West One Loans has introduced two additional credit tiers to its residential range aimed at borrowers who may struggle to meet high street lending criteria.
The Premier and Platinum tiers will support homeowners who have had historical credit issues or minor recent credit blips, or who have complex income requirements.
The added tiers sit alongside the existing Prime Plus, Prime and Near Prime tiers.
West One Loans’ Premier plan will start from 5.89%, while its Platinum tier will start from 5.99%, both of which are five-year fixed rates.
Two-year fixed rate mortgages will be available from 6.05% when the new products go live on Friday 22 November.
Each of the lender’s five credit tiers will come with its own maximum loan to value (LTV).
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The Premier tier extends up to 95% LTV, while Near Prime extends up to 75% LTV – the lender’s lowest tier.
The changes also include increased LTVs for the West One Loans’ Prime product, which will now be available up to 80% LTV.
Criteria overhaul on its way
A number of criteria enhancements have also been introduced.
Self-employed borrowers with a minimum of one year’s trading will now qualify for the lender’s Prime Plus tier, offering LTVs of up to 85%. Previously, self-employed borrowers would be restricted to 75% LTV.
West One Loans has also improved its criteria for borrowers with unsecured arrears across its newly introduced Premier and Platinum plans.
Criteria enhancements have also been made for borrowers with county court judgments (CCJs), defaults and missed mortgage payments.
It will also consider applications from borrowers who have taken out a payday loan more than 12 months ago.
Marie Grundy (pictured), managing director of residential mortgages and second charges at West One Loans, said: “This is one of the most significant set[s] of changes we have made to our range since we entered the residential market a little over two years ago.
“As an intermediary-only lender, brokers are the lifeblood of our business. And while we believe these changes will provide valuable solutions to borrowers struggling to gain access to finance, they will also make navigating our range far simpler for advisers, freeing them up to do what they do best – provide good-quality advice to their clients.
“We have plenty of other additions and enhancements to come, so watch this space.”
All changes come into effect on Friday 22 November.
In September, West One Loans released limited-edition residential products at 95% LTV for the first time.
