West One Overhauls Residential Criteria to Help a Wider Pool of Borrowers
West One Loans is adding two new credit tiers, Premier and Platinum, to its residential mortgage range as part of wide-ranging changes aimed at borrowers who struggle to get finance from high street lenders because of past credit problems, minor recent blips or complex income. They join the existing Prime Plus, Prime and Near Prime tiers.
Five-year fixed rates start at 5.89% on Premier and 5.99% on Platinum, and new lower two-year fixes start at 6.05%, with the products launching on Friday 22 November. Each tier now has its own maximum loan-to-value, from 95% on Premier down to 75% on Near Prime, and Prime rises to 80% LTV. The lender says the structure will help it serve more customers and make the range easier for brokers to use.
Criteria changes include:
• Self-employed borrowers with one year's trading can access Prime Plus at up to 85% LTV, previously capped at 75% for those with under two years' income history.
• On Premier and Platinum, borrowers with one missed unsecured payment in the past year can borrow up to 95% LTV, or 90% with two missed payments. Prime Plus drops its two-missed-payment limit, subject to satisfactory explanation.
• Improved terms for CCJs and defaults, including small unsatisfied CCJs under £500 on all products.
• A missed mortgage payment more than six months ago is now accepted on Prime at up to 80% LTV.
• Payday loans are accepted if taken more than 12 months ago on Prime Plus, or six months on Prime.
• Better Prime Plus criteria for Shared Ownership and Right to Buy, including for self-employed applicants with one year's trading.
A single £1,795 arrangement fee will apply across the range, alongside more fee-assisted products with no arrangement fee. These follow earlier process improvements, including streamlined underwriting.
Marie Grundy, Managing Director of Residential Mortgages and Second Charges, called it one of the most significant sets of changes since West One entered the residential market around two years ago. She said it would help more borrowers with imperfect credit or complex income, and simplify the range for brokers, whom she described as central to the intermediary-only lender's business, adding that further enhancements are planned.
