Rise in near prime borrowers

There has been a recent uplift in the number of borrowers who now have blips on their credit profile, or are behind on credit cards or on reduced payment arrangements. Sadly there is not many options in the market for these light adverse clients. Many high street banks dismiss them completely and there is a big step up in rates to lenders who accept adverse. I think the near-prime market could do with some new innovation from lenders who can take a view on isolated small credit blips with an explanation.

Happy to chat, i have several near prime cases i am dealing with and have definitely seen an increase in requests

The number of mortgage applicants with credit issues is steadily climbing, with cases ranging from minor County Court Judgments (CCJs) for parking tickets and occasional missed payments to those who are deeply over-indebted. This growing "near-prime" category remains underserved by mainstream lenders, leaving borrowers reliant on second-tier lenders who are stepping in to fill the gap. With credit files now holding extensive information, finding an applicant with a spotless record is becoming increasingly rare. Even minor missteps on a digital profile can lead to significant increases in mortgage costs, raising questions about the fairness and accessibility of the market. As we approach 2025, it’s time for the industry to re-evaluate what it means to be "prime" in the modern lending landscape.

We're witnessing quite the shift in the mortgage landscape, with roughly a third of new enquiries now showing some form of credit history blemish - it's rather like watching previously pristine credit scores catch a case of the sniffles. The spectrum ranges from minor blips (perhaps a fashionably late credit card payment or two) to more serious cases sporting IVAs, defaults, and CCJs that stick out like a sore thumb on credit reports.
The silver lining in this rather cloudy picture is that the specialist lending market has evolved to accommodate these near-prime borrowers. While those with more serious credit issues need to bring a chunkier deposit to the table, many lenders have developed quite sophisticated approaches to understanding and pricing this risk. It's not all doom and gloom - with the right approach and expertise, we're still able to secure mortgages for many of these clients, though they might need to adjust their expectations regarding rates and deposits.