Aldermore’s policies now include more lenient considerations for borrowers with minor credit infractions, such as ignoring combined county court judgements (CCJs) and defaults up to £300 per applicant across all criteria levels.
Furthermore, for Level 3 mortgages, recent mortgage arrears, CCJs, and defaults starting from six months ago are permissible, along with up to three missed payments on unsecured loans in the past 12 months, provided the customer is currently up to date.
Recent studies, including Aldermore’s own First Time Buyer Index, highlight the difficulties faced by potential homeowners with poor credit histories. The index found that 17% of prospective first-time buyers reported poor credit, and 23% had been rejected for a mortgage, reflecting a significant portion of the population potentially sidelined by conventional lending criteria.
“We’re aiming to offer more people the option to achieve their homeownership goals,” said Jon Cooper (pictured), director of mortgage distribution at Aldermore. “We back people to go for it in all walks of life; more choice for borrowers, increased resources for broker partners and ultimately, greater outcomes for those we serve.
“These latest changes cater to the diverse needs of today’s homebuyers, with Aldermore’s expert team on hand to unlock new possibilities for our customers.”