Sitting between prime and impaired credit, the products aim to offer a pragmatic option for complex cases, with pricing that remains closer to the mainstream market than traditional sub‑prime

Vernon Building Society has launched a new Credit Repair mortgage range designed to help borrowers who have experienced historic credit issues.

Sitting between prime and impaired credit, the products aim to offer a pragmatic option for complex cases, with pricing that remains closer to the mainstream market than traditional sub‑prime.

The range comprises three products available for both purchase and remortgage. These include a 3‑year 2.44% discount at 5.16% up to 85% loan-to-value (LTV) with a £499 fee (Tier 1), 3‑year fixed rate at 5.29% up to 85% LTV with a £999 fee (Tier 1), and a 5‑year fixed rate at 5.49% up to 80% LTV with a £999 fee (Tier 2).

The new products align with updated lending policy criteria and introduces a new two‑tier structure above the Vernon’s standard prime criteria, depending on the extent of previous credit problems.

Tier 2 can accommodate more severe or recent historic issues than Tier 1.

The Credit Repair criteria enables the Vernon to take a flexible, case‑by‑case view across a wide range of previous credit issues, including arrangements to pay, missed payments on consumer credit, loan and mortgage arrears, payday loans, defaults, satisfied County Court Judgements (CCJs) up to £500 in the last 36 months, active or recently satisfied debt management plans, and historic IVA, bankruptcy, DRO or repossession.

Different levels of consideration apply under each tier, giving intermediaries clearer routes for placing cases that fall just outside prime.

Brendan Crowshaw, head of mortgage and savings distribution at Vernon Building Society, said: Credit challenges are no longer a niche issue.

We’re seeing more applicants with some form of historic blip on their record, from younger buyers and the self‑employed through to those who have simply had a tough few years financially, he said.

Traditional lenders can be reluctant to look beyond those facts, even when an applicant’s current situation is strong, he said.

He added: Our Credit Repair range is designed to bridge that gap, combining realistic, clearly defined criteria with common‑sense underwriting to help brokers get good quality clients the home they deserve.