UCB gets into sub-prime

UCB Homeloans launched into the sub-prime market last week with a range of light adverse credit loans.

The Nationwide specialist lender has lent in the self-cert sector for over 15 years and is also one of the top 10 buy-to-let lenders in the UK, according to the Council of Mortgage Lenders.

But in order to increase market share and widen opportunities to grow the business it will now lend to borrowers with slight credit adverse problems, although it will not offer medium and heavy adverse loans to customers with more serious credit problems.

It has launched with three adverse product categories including self-cert and extra light adverse with up to 1,000 in County Court judgments or defaults and up to one month’s mortgage or rent arrears.

There are also self-cert and light adverse categories with up to 2,000 in CCJs or defaults and up to two months’ mortgage or rent arrears. The range also offers a self-cert and light adverse category which allows for up to 3,000 in CCJs or defaults and up to three months’ mortgage or rentarrears.

Keith Astill, managing director of UCB Homeloans, says: “Over the past few years we’ve concentrated on enhancing the products and criteria for our existing markets as well as developing our online proposition.

“To provide our brokers with the service and products they expect from us, we are broadening our offering by increasing the number of markets in which we operate.”

Mathew Wyles, group development director at Portman, says: “The sub-prime market is competitive but UCB has spent a long time researching its proposition. Its distribution strategy, product pricing and risk strategy are all well thought out.”