Legal & General Mortgage Club is the latest distributor to offer com-plex prime with the launch of a fixed rate mortgage with no credit score last week.
The two-year fixed rate mortgage at 3.35% is being offered by Hanley Economic Building Society. It comes with a £100 booking fee and a £1,399 administration fee, and is available up to 75% LTV .
L&G says advisers can speak directly to an underwriter and applicants will not need to be credit scored.
Martyn Smith, head of mortgage products at Legal & General, says credit scoring has its place but complex prime cases are not always catered for by it.
He says: “There are many reasons why credit-worthy borrowers might generate a low credit score.
“Ditching credit scoring is an innovative, back to basics way of looking at lending and the rate on this product is competitive too.”
But there has been some debate in the industry on the meaning of complex prime. Both Kensington and GE Money Home Lending re-cently launched products for clients with County Court Judgments.
These have been given the complex prime tag, but Robert Sinclair, director of the Association of Mortgage Intermediaries, says a complex deal should refer to a prime customer with no adverse credit issues – no CCJs or bank-ruptcy and a good payment history.
He says: “The complex element should come from the nature of the transaction. House type, mortgage term, income complexity, issues with ownership or co-owners.”
He adds that any deals with any adverse features should be classed as near prime or soft prime.