Shawbrook has moved to clarify the criteria around adverse credit for those looking to secure its R10 residential investment mortgage following feedback from brokers.
The R10 mortgage, which was launched back in July, is designed for properties intended for private letting that do not require any work.
Since launch the product has proved popular with brokers and Shawbrook are keen to clarify any confusion so as to help intermediaries better service their clients
Karen Bennett, Shawbrook’s sales & marketing director, commercial mortgages, said: “We strive to consistently shine a light on our own performance, responding to the needs of our brokers and making changes wherever possible to help them grow their business and deliver for the borrower.”
Shawbrook has said it will not accept unsatisfied CCJs within the last 24 months (however it will consider recently satisfied ones on a case by case basis).
Mortgage arrears are unacceptable regardless of when they occurred. As is business adverse within the last 36 months or unsatisfied defaults over £100 within the last 24 months.
The challenger bank has also removed the need for the deposit to be funded from the client’s own sources. As such brokers can now follow the standard deposit criteria.
Bennett added: “This change and the additional clarity provided around customers’ credit history is a clear indicator of our desire to promote transparency across our offering, and we plan to continue this using feedback from our broker partners and the market.”