Lenders target those with bad repayment history

A new mortgage has hit the market aimed at borrowers with a bad repayment history.

11:35 13 September 2004

A new mortgage has hit the market aimed at borrowers with a bad repayment history.

Vesta Packaging has launched a product called a New Start mortgage which allows customers currently in arrears to apply for a loan.

It is for purchase and remortgage permits and should be allowed as long as any three out of the last six payments have been made.

"There are a large number of individuals who feel they cannot apply for another mortgage because they have arrears," explains Mark Leaper the managing director of Vesta Packaging.

"They are effectively excluded from the mortgage market at the present time. This product is designed specifically for them, providing, of course, that they are able to turn over a new leaf and keep up with their payments."

An unlimited amount of County Court Judgments are permitted, in addition to Individual Voluntary Arrangements (IVA) which have been well conducted for at least six months.

Discharged bankrupts can also apply for this mortgage, as any adverse credit more than two years' old will be ignored.