West One Loans has introduced new credit tiers, aiming to assist more borrowers.
- Two new tiers, Premier and Platinum, target those with past credit issues or complex incomes.
- The initiative includes revised loan-to-value ratios and distinct criteria for missed payments.
- Affordable housing schemes now have enhanced options under the new criteria.
- The lender’s strategic changes aim to simplify processes for advisers and borrowers.
West One Loans has expanded its lending portfolio by adding Premier and Platinum credit tiers to its existing options, such as Prime Plus, Prime, and Near Prime. This strategic move is designed to accommodate borrowers who may have faced historical credit challenges or possess complex income profiles, thereby increasing accessibility to loans.
The new credit tiers are competitively priced, with the Premier tier starting at 5.89% and the Platinum tier at 5.99%. These tiers offer five-year fixed rates alongside two-year fixed options, which will commence from 6.05% upon their launch on the 22nd of November. Notably, each credit tier is structured with its own maximum loan-to-value (LTV) ratio, with Premier offering up to 95% and Near Prime capping at 75%. The Prime tier’s maximum LTV has been raised to 80%.
Significant changes are also being implemented to benefit self-employed individuals. Borrowers with at least one year of trading can now qualify for the Prime Plus tier, which allows up to 85% LTV, easing previous requirements of two years of proof of income. Moreover, the new criteria aim to assist individuals with unsecured arrears. For example, those with a maximum of one missed unsecured payment in the past year can now access loans up to 95% LTV, while individuals with up to two such missed payments can procure loans up to 90% LTV.
Amendments also address borrowers with County Court Judgments (CCJs) and defaults. West One now provides options for those with minor unsatisfied CCJs, specifically under £500, across all products. Additionally, missed mortgage payments that occurred more than six months ago are no longer an automatic disqualification for the Prime Product, which offers up to 80% LTV. This inclusive approach is further extended to consider past payday loans, with stipulations based on the timeframe of the loan.
Borrowers availing affordable housing schemes such as Shared Ownership and Right to Buy are set to benefit from the revised criteria. The introduction of a £1,795 fixed arrangement fee, increased number of fee-assisted products, and more no arrangement fee options mark key adjustments in West One Loan’s offerings. This is particularly advantageous for those seeking larger loans.
Marie Grundy, Managing Director of Residential Mortgages and Second Charges at West One Loans, elaborated on these developments, stating that these constitute one of the most substantial revisions to their product range since entering the residential market. She affirmed that the new tiers and criteria enhancements are intended to assist borrowers who might struggle to meet the expectations of mainstream lenders, simplifying navigation for advisers in the process.
West One Loans’ strategic updates to their credit options expand opportunities for a broader range of borrowers, simplifying access and improving criteria.
