Aldermore has broadened support for first-time buyers attempting to get onto the property ladder.
The specialist lender has introduced two new lending tiers across its Help to Buy equity mortgage range.
The new products are named ‘Level 2’, with rates starting from 4.78 per cent on up to 75 per cent LTV, and ‘Level 3’, which includes rates from 5.28 per cent on up to 75 per cent LTV, both with free standard valuations.
Figures collected by Aldermore show that 13 per cent of prospective and actual FTBs have had credit card debt, 12 per cent have missed bill payments, 7 per cent have taken out payday loans, 6 per cent have had accounts handled by collection agencies, 4 per cent have CCJs on their record and 3 per cent have declared bankruptcy.
The lender will now consider applications from people who have CCJs or defaults registered over six months, filed for 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.
Aldermore director of mortgages Damian Thompson says: “The average first-time buyer is 31 years old which means they were starting their careers the same year the global financial crisis began.
“This group has had to navigate a hugely challenging economic climate so it is reasonable to expect some may have had credit blips, gaps in employment, and even resorted to short-term credit in the past.
“We believe that those that have since recovered from credit difficulties in their past should have the opportunity for home ownership.
“Our approach to lending enables us to consider each case on its individual merits so we can support those people with a complex financial history or a less than perfect credit score.”