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Mythbusting with Morris: Why a credit blip doesn’t mean the end of your customer’s home owning dream

James Forth


Roger Morris - Group Distribution Director

Published 16.07.2021

After a damp start to the summer which has seen the rain cascading down, I thought I’d greet the arrival of some long overdue sunshine by basing this week’s blog on another sort of cascade.

Instead of the weather, though, I’m talking about our Precise Mortgages’ automatic cascade process.

For those of you not already familiar with automatic cascading, here’s how it works. Say your customer wants to apply for a residential mortgage, but they’re unsure if they’ll be able to access the product you’ve recommended because they don’t think they’ll meet our criteria. Fortunately, our intuitive online system will ‘cascade’ them through the product tiers to show them the products available to them, based on the information you’ve provided us with about their individual credit profile.

It means that, wherever possible, we’ll always look to provide a lending option for your customer to consider. Rest assured, a decline is always the very last resort.

And you don’t need to worry about the impact it will have on your customer’s credit report – the process only leaves a soft footprint. All you need to do is key in their exact details and our system will go to work. It completes an automated credit search to determine what, if any, adverse they may have, as well as identifying any credit they may have taken out and completing other automated checks, such as searching the voters’ roll. It also works out how much they could borrow based on their income, expenditure and credit profile.

The final step before full illustration is to show you all the products available to your customer from the lowest rate down, based on the details you’ve keyed in. If you don’t want to view products based on rate alone, you can choose to reorder the results based on the various other product features, such as product term or fee, helping you to pick the best product that matches your customer’s circumstances.

I’m pleased to say that automated cascading is available again as part of the recent relaunch of higher loan-to-value (LTV) limits across our residential mortgage range and the reintroduction of wider acceptable adverse credit criteria.

Maximum LTVs of up to 85% are now available for customers with unsecured arrears and historical adverse credit, while those with more recent credit blips, including defaults and/or CCJs in the last two years or secured arrears in the past three years, can opt for products with up to 80% LTV.

And that’s not all. With rates from just 3.29% and a refund of valuation fee (up to a maximum of £630), this could really help those with less than perfect credit histories who may be struggling to find the mortgage they need on the high street.

To find out more, take a look at our residential mortgages.

As always, if you’ve got any questions or need some support with a case, don’t forget a member of our sales team is always here to help or you can call our dedicated support service on 0800 116 4385.

 

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