Cheltenham & Gloucester has moved into the light adverse market but has decided against moving deeper into the sub-prime sector, following an internal review.
C&G said in February it was considering a move into the non-conforming and equity release sectors, but while it has not detailed any firm plans regarding self-cert or equity release, it has now made its feelings on the sub-prime market clear.
The lender, along with parent Lloyds TSB, began a pilot with direct customers selling near prime products earlier this year but rolled that offering out to the broker market this week. It says it does not want to miss out on business from customers who only have a few missed credit card payments.
A C&G spokesman says: “C&G and Lloyds TSB have for some time been doing some near prime lending, albeit on a small scale. In recent months we have developed products – now available through intermediaries – for people with previous minor credit problems who wouldn’t meet some aspects of our standard credit scoring criteria. This is not a precursor for an entry into the sub-prime market.”
C&G has also expanded its buy-to-let criteria by increasing the maximum number of properties allowed per person from three to nine, and introduced a 65 per cent and 75 per cent loan-to-value offering to add to its 85 per cent product.