Stroud and Swindon, the UK’s 15th largest building society, today launches its first ever mortgage product targeted specifically at customers who have had financial difficulties in the past.

The product, which will be provided by the Society’s wholly owned subsidiary Stroud & Swindon Mortgage Company Limited, is branded ‘Evolve’ and offers customers a more flexible underwriting approach than similar products from other lenders.

Richard Scott, Intermediary Sales Manager of Stroud & Swindon, explains: "We only insist that borrowers have had a minimum 6 month period during which they haven’t missed any payments, unlike some competitors who require 12 months free of defaults or arrears. This means that we’re receptive to helping a greater number of potential customers. We’re also offering competitive 3 year fixed rates as low as 6.39%, which we believe will prove attractive to borrowers."

"In launching this product, we’re looking to attract new customers to the Group who have had financial difficulties in the past but are now able to demonstrate a track record of meeting their financial commitments and wish to re-establish themselves in the prime mortgage market. We’ll look at people who have satisfied CCJs amounting to up to £10,000 and who have missed up to 3 payments in the past 12 months – provided they have missed none in the past 6 months. We believe that after 6 months people can prove that they can be good, safe borrowing customers for us. Applications are assessed by our dedicated lending centre rather than by credit scoring techniques used by many competitors."

This is the first time the Stroud & Swindon has offered a specific credit-impaired mortgage product. Richard Scott continues: "Many borrowers don’t qualify for a mainstream mortgage product. It may be due to County Court Judgements, failure to keep up payments on loans, or declaring yourself bankrupt, and the changes to the Bankruptcy laws last year make it even more common. Our launch of the ‘Evolve’ mortgage recognises that people with impaired credit histories have specific financial needs and we want to give them the opportunity to apply for a Stroud & Swindon mortgage. This is an exciting development for us and a great way of opening the doors to new customers. After three years, we would hope to be able to transfer them onto one of our competitive mainstream products and welcome them as members of the Society."

Notes for Editors

The Evolve mortgage

The Evolve mortgage is provided by the Stroud & Swindon Mortgage Company and is aimed primarily at the intermediary market, and will not be available through the Society’s branch offices.

Brief details of the 2 schemes are shown below:

Scheme/Rate	Maximum LTV	Guide to satisfied CCJs	12 months’ Mortgage/rent payments history
Scheme 1 6.39% fixed until 31/05/2008	85%	Max £6,000	Max 2 missed payments in last 12 months - satisfied (none in last 6 months)
Scheme 2 6.79% fixed until 31/05/2008	75%	Max 10,000	Max 3 missed payments in last 12 months - satisfied (none in last 6 months)

 

Intermediaries can obtain full information, a KPI or a personalised illustration for their clients via Stroud & Swindon’s dedicated intermediary website www.ssbsintermediaries.co.uk or via the intermediary help desk on 08456 024598.

Stroud & Swindon Mortgage Company Limited is a wholly owned subsidiary of Stroud & Swindon Building Society, used as a vehicle for acquiring mortgage books and originating new loans.

Stroud & Swindon is the 15th largest building society in the UK with assets in excess of £2.3 billion. The Society operates through a branch network of 22 offices in the South West, complemented by a direct call centre based in Stroud and website.

For further information please contact:

Richard Scott, Intermediary Sales Manager, 07971 264482

David Greenleaf, Corporate Communications Manager, 01453 768244

Brian Thorn, The Wriglesworth Consultancy, 020 7845 7900