For Intermediaries Only.

For aspiring homeowners, the path to buying is often blocked early by their credit history. In many cases, mainstream lenders close their doors at the first sign of a missed payment or an outstanding debt. 

Data from 2024 found that 16% of UK adults experienced adverse credit within the last three years, and despite those credit blips, one in ten planned on purchasing a new home.

Brokers who recognise this type of client and have a granular knowledge of their credit histories are in a much better position to reach out to specialised lenders. In a recent webinar hosted by LendInvest, 70% of attendees said that they have seen an increase of clients with less-than-perfect credit histories.

These clients come to brokers with the most common credit challenge of unsecured arrears, CCJs/defaults and secured arrears.  

As this type of borrower becomes more common, it’s crucial for brokers to reach out to lenders who understand that a credit report only tells part of the story.

How we Cut the Complex for a Home Buyer with Adverse Credit

A broker approached LendInest on behalf of their clients, a married couple looking to purchase a larger home. They wanted to sell their existing home, use those proceeds along with a gift from one of the applicant’s parents to use as the deposit for a new home. 

Both applicants had verified long-term employment, but one of the applicant’s credit histories included defaults and missed credit card payments, potentially disqualifying their application at traditional high street lenders. 

However, we were able to support these applicants and placed them into our Support credit tier, and secured a loan for £230k.

Not only that, but by using open banking and dual representation, we were able to save both the broker and their clients time and money.

How to Cut the Complex with LendInvest

We believe that everyone should have the opportunity to own their own home, and that’s why we take a different approach from traditional lenders. We’ve introduced four distinct credit tiers, each designed for some forms of allowable adverse credit.

Instead of relying on credit scores, we compare credit histories to our tiered product profiles:

• Premier
• Advantage
• Progress
• Support

No matter the client’s credit situation, we may have the right solution based on our new credit criteria.

LendInvest plc is a public limited company registered in England and Wales (No. 8146929). Registered

Office: 4-8 Maple Street, London, W1T 5HD.

LendInvest Mortgages and LI Mortgages are registered trading names of LendInvest Loans Limited. LendInvest Loans Limited is authorised and regulated by the Financial Conduct Authority (FRN:737073). LendInvest Loans Limited is a company registered in England & Wales (Company No. 09971600) and is a wholly owned subsidiary of LendInvest plc.

Regulated lending is provided via LendInvest Loans Limited (Company No. 09971600). Unregulated lending is provided by LendInvest BTL Limited (Company No. 10845703) and LendInvest Bridge Limited (Company No. 11651573), which are wholly owned subsidiaries of LendInvest plc.

Borrowing through LendInvest and its affiliates involves entering into a mortgage contract secured against property. Your property may be repossessed if you do not repay your mortgage in full.