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%.