The Intermediary – April 2025 - Flipbook - Page 16
RESIDENTIAL
Opinion
Flexible solutions
for borrowers
in need
F
or mortgage applicants
who have experienced
some sort of credit blip,
the process of securing
a mortgage can oen
feel daunting.
When faced with the automated
credit scoring systems of the large
banks, many of these borrowers
oen believe their credit history
will prevent them from securing a
mortgage, or that their only option is
to turn to a specialist lender.
However, this isn’t always the
case. Mansfield Building Society, for
example, can also cater to applicants
with less-than-perfect credit histories
while offering competitive rates
and flexible product options to meet
their needs.
Rather than using a one-sizefits-all approach when assessing
mortgage applications or pigeonholing
borrowers, we use a more personal
approach to underwriting.
This enables us to get a beer
understanding of the borrower’s
circumstances and the reasons that
may have led to the credit blip.
In many cases, these blips tend
to be temporary and are oen the
result of major life changes, such as
redundancy, divorce, or most recently,
the Covid-19 pandemic. Oen,
the borrower may have also made
aempts to improve their credit score
or found a new job, and is already on
the path to rebuilding their finances.
Combinations of criteria
Adopting a personalised approach to
underwriting oen means that lenders
can offer a broad range of product
solutions, too. These include the
ability to combine criteria and cater to
borrowers looking to consolidate debts
to make managing money easier, or
supporting borrowers with a non-
16
The Intermediary | April 2025
TOM DENMAN-MOLLOY
is intermediary sales manager
at Mansfield Building Society
standard income stream, such as the
self-employed and contractors.
As a lender dedicated to helping
borrowers achieve their goals
of homeownership, Mansfield
Building Society prides itself on its
accommodating approach and an
ability to grade products according
to risk, whether the applicant
is perceived to be a prime or
‘specialist’ borrower.
For example, our Credit Repair
range of products have been
specifically designed to help borrowers
who have experienced credit
challenges. This includes those who
have previously been discharged as
bankrupt, hold an existing individual
voluntary arrangement (IVA) or
borrowers with up to £6,000 in
County Court Judgments (CCJs) that
are over 12 months old.
We can also accommodate
borrowers with less severe
credit issues, as well as quirky
circumstances, such as unusual
properties or clients with limited
employment or self-employed history.
Real life lending
Quite oen, we can become
fixated on product pricing. That’s
understandable when the monthly
repayments are such a significant part
of the borrower’s experience with a
lender. Yet it is equally important that
lenders enable healthy and positive
outcomes for borrowers, and we take
pride in showcasing case studies of
how we’ve helped.
In one particular case,
Mansfield approved an
application from borrowers
owning a property aached
to a windmill, who were
seeking to remortgage at
30% loan-to-value (LTV)
to consolidate credit card
borrowing and raise money for
home improvements. The mortgage
also incorporated interest-only
repayments with property downsizing
to repay the capital at the end
of the term.
In another case, we helped a family
with a Right to Buy purchase at
100% of the discounted price with
affordability assessed on multiple
income sources, while taking into
account historical adverse credit with
a satisfied CCJ.
Helping borrowers that require a
more flexible and personal approach
to lending is what many smaller
lenders and building societies do best.
Working with brokers to
understand the needs of these
borrowers, and cater for their
circumstances, will not only provide
flexible solutions for their purchase or
remortgage needs, but also set them on
the path to a beer financial future. ●
