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L&G launches fixed rate deal with no credit scoring

Legal & General Mortgage Club has launched an exclusive two-year fixed rate mortgage at 3.35%, provided by Hanley Economic Building Society.

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 this approach.

He says: “There are many reasons why an otherwise credit-worthy borrower 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 extremely competitive too.”

David Lownds, head of risk at Hanley Economic Building Society, says: “We are delighted to work in partnership with Legal & General, at The Hanley we pride ourselves on providing excellent customer services combined with quality mortgage products. Our individual approach to underwriting has served the Society extremely well over the years in terms of both risk and service.”

The product comes with a £100 booking fee and a £1,399 administration fee and is available to a maximum LTV of 75%.


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  • Anon IFA 20th April 2010 at 9:31 pm

    Wow quite an arrangement fee !! and a 25 % deposit to boot. Obviously of no benefit to a large tranche of borrowers!

  • Grey Haired Underwriter 20th April 2010 at 12:31 pm

    Lisa, this isn’t innovative – the medium to small building societies have been doing it for decades. The trouble is that the intermediary market always looks to the big lenders because of rate whereas Building Society’s offer flexibility, individual treatment of each case and an underwriter to talk to. Personally I think that the way we approach loans actually can make us the best choice for your customer. Why not phone you local Society and foind out what they do. They won’t always be on Trigold because they get swamped too easily. I deal with a lot of brokers who consider us to be their first port of call for any loan that doesn’t meet super prime

  • Simon Wilkinson 20th April 2010 at 12:21 pm

    Excellent news – about time a lender got away from the “box-ticking” mentality of underwriting. Proper Underwriters with knowledge and experience who are prepared to listen to brokers and take a balanced view of a case instead of plucking out spurious reasons to decline cases

  • Andy Valvona 20th April 2010 at 12:11 pm

    Excellent News!!!! – let’s hope that the Hanley will be able to cope with the demand for this product.

  • Graham Griffin 20th April 2010 at 11:14 am

    Very refreshing especially given my experience today with Abbey.

  • Graham Griffin 20th April 2010 at 11:14 am

    Very refreshing especially given my experience today with Abbey.

  • Bobby Welsh 20th April 2010 at 11:07 am

    More need to follow suit and move back to near prime rather than super prime or nothing at all

  • Lisa Hockley 20th April 2010 at 10:59 am

    Very refreshing and a good rate too. Brilliant to see more innovation in the market.

  • simon knox 20th April 2010 at 10:45 am

    This has got to be good for borrowers who might otherwise struggle due to low scores. well done Hanley