West One Loans has made substantial changes to its residential lending criteria.
- Two new credit tiers, Premier and Platinum, have been introduced.
- These tiers target borrowers who do not meet high street lending standards.
- Lower fixed-rate mortgages will be available starting from November 22nd.
- Self-employed borrowers can now benefit from relaxed income proof requirements.
West One Loans announced significant updates to its residential mortgage offerings, unveiling two new credit tiers—Premier and Platinum. These introductions aim to cater to borrowers who may not align with the stringent requirements of traditional high street lenders. By broadening its criteria, West One Loans positions itself as a more inclusive option for those with historic or minor credit issues and complex income profiles.
The new Premier tier offers five-year fixed rates starting at 5.89%, whereas the Platinum tier begins at 5.99%. Additionally, borrowers can look forward to lower two-year fixed rate mortgages, which will become accessible starting on November 22nd. As part of these updates, West One Loans will now offer varying maximum loan-to-value ratios (LTV) for each of its five credit tiers. The Premier tier offers up to 95% LTV, a stark contrast to the 75% LTV available in the Near Prime tier.
West One Loans has also broadened its criteria significantly for self-employed individuals. Those with a minimum of one year’s trading history can now qualify for the lender’s Prime Plus tier, which extends LTVs up to 85%, overcoming the previous limitation of requiring at least two years of income evidence for an LTV of 75%. This shift marks a notable advance for entrepreneurs seeking financial flexibility.
Furthermore, the revamped criteria address unsecured arrears more leniently. From Friday, borrowers with a history of up to one missed payment in the past year may access loans up to 95% LTV; similarly, up to 90% LTV is accessible for those with two missed payments. The Prime Plus plan removes previous restrictions on missed payments, offering LTVs up to 85% given satisfactory explanations.
Significantly, West One Loans has adapted its policies to include borrowers with County Court Judgements (CCJs) and defaults. Options are now open for those with small unsatisfied CCJs under £500 across all products. Additionally, the lender is open to applicants who missed mortgage payments more than six months ago under its Prime Product, with LTVs reaching 80% LTV.
Continuing this forward-thinking approach, the criteria now consider applications from borrowers involved in affordable housing schemes like shared ownership and Right to Buy. These enhancements are pivotal for both employed and self-employed applicants participating in such schemes. A unified fixed arrangement fee of £1,795 now applies across the range, benefiting those seeking larger loans, even as the lender continues to offer fee-assisted products.
Marie Grundy, managing director at West One Loans, stated, “By introducing two new credit tiers and more accommodative criteria for those borrowers with less than a perfect credit profile, we will be able to help an even greater number of customers”. This strategic evolution signifies a deeper commitment to addressing the diverse needs of borrowers, enhancing their capability to navigate financial pathways previously restricted to them.
West One Loans’ strategic adjustments demonstrate its commitment to providing broader access and flexibility for borrowers with varied financial backgrounds.
