We sent an email promoting Kensington’s long running expertise in lending to customers who have failed a credit score.
This may not seem significant, but our effort to communicate how we manage credit score fails and the types of customers who could typically fail an automated score is a big step as we try to make our business more transparent to our brokers and provide you with the information you need to know about what we do.
Kensington has been lending mortgages through intermediaries for a long time – we’ll celebrate our 20th birthday next year and with age and experience comes caution. We have rightly taken a cautious approach to how we communicate our proposition, conscious that the press doesn’t always let the facts get in the way of a good headline.
But experience also gives you insight and we understand that there are many credit worthy applicants out there who have previously failed an automated score.
We don’t want to invite an influx of applications that will never pass our critiera as this won’t be helpful for anyone. But we are confident enough that brokers will be able to recognise those cases where an applicant’s circumstances and ability to repay a loan make sense to an experienced underwriter, even if they haven’t passed another lender’s algorithm.
It is now much more widely understood that a failed credit is not necessarily the result of irresponsible money management. Research by Experian CreditExpert tells us that 60% of ‘Help to Buy hopefuls’ aged 20 to 40 and planning to apply for the Government’s mortgage scheme this year are not registered to the electoral roll at their current address.
While Confused.com recently found that nearly six million people in Britain has been declined for credit in the past three years, while almost 30 million are completely unaware of what their credit rating is.
These are not small numbers. And as mainstream automation increases, those marginal applicants who may have a limited credit history, have failed to register on the electoral roll, recently moved jobs or home, or maybe even have historical credit problems will increasingly look to a specialist.
Promoting our willingness to look at your failed credit score clients is not a throwback to the past. It’s an awareness of the current environment and a nod to the future that acknowledges we are in a position to take a more personal focus which makes for a more inclusive and responsible lending process.