How big a problem is adverse credit?
The app-based bank, situated in Durham, offers a range of mortgage products, including buy-to-let, remortgage, and product transfer, and considers those with adverse credit, with its near prime mortgages. Atom says it’s important how clients are appraised, particularly if they have a less than perfect credit history.
“The difficulties of the last few years have inevitably resulted in greater numbers of clients having the odd payment issue in their record, a late or missed payment or two,” noted Castling. “These are not a sign of a bigger problem, but rather a short-term blip, yet this black mark can have an enormous impact on their borrowing prospects.
“Many lenders are unwilling to even consider these applicants, while those that do may exclude them from certain processes which mean a faster resolution to the application. That can lead to huge frustration for brokers and clients alike, as they try to navigate these difficulties, which is why we are passionate about handling near prime clients differently at Atom bank.
“Not only do we take a more inclusive approach towards applicants with a credit hiccup, but we also ensure they benefit from the same speedy processes available to prime customers.”
The mortgage market is always evolving, of course, particularly when it comes to regulation and compliance.