Loughborough Building Society has reshaped its adverse lending proposition for clients with historic or ongoing credit challenges.

The new range has 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; and

Credit repair – to support applicants with the recent and challenging credit events.

A new credit matrix available to brokers outlines how each tier supports borrowers with issues including defaults, CCJs, IVAs, DMPs, repossessions, and bankruptcy. 

The Loughborough has also introduced an online adverse tool, helping brokers quickly determine product eligibility at the pre-DIP stage. This helps brokers manage customer expectations from the outset.

The society recently launched a decision engine, which automatically identifies adverse credit issues within an application and cascades outcomes to the appropriate tier.

Ashley Pearson, head of intermediaries at Loughborough Building Society, comments: “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.”