Norwich and Peterborough has launched a new range of mortgages aimed at homebuyers whose credit rating is low due to previous debt problems.
This product range will be available exclusively to brokers, before being launched through the Societys branch network in November.
There are a range of two year fixed and tracker products available, dependent on the buyers credit situation. For example, a homebuyer with a light adverse credit rating ( which is a maximum of 2,000 in CCJs within the last two years, a maximum of one arrear in the last year and none in the last six months) could take a mortgage with a rate of bank base rate + 0.49% for two years, with an LTV of 90%.
For more recent CCJs, larger debts, or for buyers whose bankruptcies have been discharged or have settled an Individual Voluntary Arrangement with a lender, other products and rates will be available.
Stewart Hunter, head of introduced mortgages for N&P, says: Credit impaired mortgages are a growing market. Whilst we are careful about lending in what is a higher risk area of mortgage business, this type of lending has become commonplace.