Loughborough Building Society has unveiled a completely redefined adverse lending proposition, designed to provide brokers with greater flexibility and support when placing clients with historic or ongoing credit challenges.
The new range is structured across four tiers:
- Standard products – for applicants with limited or no recent adverse credit
- Near prime – for borrowers with minor credit issues
- Credit impaired – for those with more significant historic adverse
- Credit repair – the Society’s highest-ranking adverse product, specifically developed to support applicants with the most recent and challenging credit events.
The new credit matrix outlines how each product tier supports borrowers with a wide spectrum of issues, including defaults, CCJs, IVAs, DMPs, repossessions, and bankruptcy. For example, applicants with defaults registered within the last two years or unsatisfied CCJs may still be eligible under the credit repair product, while those with older, satisfied events can often be placed into lower tiers with higher LTV options.
To complement the launch, The Loughborough has introduced an online adverse tool, helping brokers quickly determine product eligibility at the pre-DIP stage. This ensures faster, more accurate case placement and helps brokers manage customer expectations from the outset.
The proposition is further strengthened by The Loughborough’s recently launched decision engine, which automatically identifies adverse credit issues within an application and cascades outcomes to the appropriate tier. This allows for a more streamlined process while preserving the Society’s hallmark of personalised underwriting.
Ashley Pearson, Head of Intermediaries at Loughborough Building Society, commented:
“We are proud to launch a truly comprehensive adverse lending proposition that reflects the realities of today’s market. Many borrowers have experienced financial challenges in recent years, and our new tiered structure, supported by smart technology, ensures that brokers can place more cases with greater confidence.
By combining our online adverse tool with the intelligence of our decision engine, we’re giving brokers the clarity and speed they need, while offering customers fair, responsible access to mortgage solutions that suit their circumstances.”