N&P launches ‘credit repair’ mortgage range

Norwich and Peterborough Building Society (N&P) has launched a new range of mortgages aimed at homebuyers whose credit rating is low due to previous debt problems.

There are a range of two year fixed and tracker products available, dependent on the buyer’s credit situation. For example, a homebuyer with a ‘light adverse’ credit rating (e.g. a maximum of £2,000 in CCJs within the last two years, a maximum of one mortgage 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 (currently 5.49%) with an LTV of 90%.

For more recent CCJs, or larger debt, or for buyers whose bankruptcies have been discharged or who have settled an IVA (Individual Voluntary Arrangement) with a lender, other products and rates will be available.

Richard Barker, product manager for N&P, said: “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 and using our affordability index means we have a clearer picture of an applicant's earnings and outgoings and an accurate view of whether they can really afford the mortgage. As always, our mortgage advisors in our branches and our contact centre will be on hand to help customers to find the best product for their individual situation.”