"Many of these applicants will have been living and working in the UK for a number of years and will now be seeking to establish roots, start a family and buy a house."
Financial inclusion plays an important role in helping consumers gain access to financial products and solutions that can help them build and accumulate wealth. This is particularly important for economically underprivileged consumers or those who may have experienced a credit blip or financial difficulty in the past.
It is also important for those consumers who may have moved to the UK from overseas or for those who may have lived abroad for many years and who are now resident in the UK, particularly as many of these people will have a gap in their credit history while others may have no credit history at all.
For many of these individuals, having a poor or non-existent credit history can make it extremely difficult to gain access to credit, open a bank account or borrow money. It can also prove to be a major barrier when it comes to trying to buy a house.
Helping these borrowers and finding solutions for those who fall outside the realms of mainstream lending criteria has always been a key priority for Norton Home Loans. All individuals, regardless of their background or income, should have access to useful and affordable financial products and services.
As a business, Norton has been catering to the needs of specialist lending clients for over 50 years and is well versed is seeking out ways to help these borrowers achieve their homeownership goals.
Therefore, with this in mind, Norton recently enhanced the lending criteria across its Optimal home loan plans to offer greater flexibility and accessibility to borrowers. Key to this was improving access to mortgage borrowing for those with temporary residency and right to reside status.
Under the changes, borrowers with a temporary living status are now eligible to apply for both first and second charge mortgages, with anyone doing so needing to secure an Equifax credit score of at least 300.
They must also have proof that they are progressing towards permanent residency and the withdrawal of their visa/temporary rights to reside and have lived in the UK for two years.
Although applications such as these are often referred to Norton by brokers, enhancing the lending criteria to be more inclusive and provide greater clarity means brokers will now benefit from a clear proposition that allows them to more easily cater to the needs of this underserved demographic.
Many of these applicants will have been living and working in the UK for a number of years and will now be seeking to establish roots, start a family and buy a house.
Given the length of time it can take for many people to secure permanent residency or settled status, allowing them to take out a mortgage to buy a house provided they meet the eligibility criteria can help them achieve their goals as they work towards a more stable living arrangement.
Helping the underserved remains a priority for Norton which is why, in addition to the changes around residency requirements, the minimum six-month length of mortgage history has also been removed. This means borrowers with any length of mortgage history can apply, provided they can supply evidence of payment.
Borrowers applying for a mortgage under the Right to Buy scheme can also benefit from product enhancements, with applications that now exceed the purchase price by up to £10,000, subject to a maximum 60% LTV, also considered.
Similarly, a new maximum LTV of 85% across Norton’s Optimal range means there are more opportunities for customers with an adverse credit history to borrow larger sums.
Given the affordability challenges facing borrowers over the last few years, adapting our offering in line with market changes means we can help those underserved individuals gain access to products and solutions that meet their needs.
Not only does enhancing our product range strengthens our position as a lender of financial inclusion, it also once again shows our commitment and support to the broker market and to those borrowers who frequently fall outside the parameters of mainstream lending.
