The Mortgage Club run by Legal and General, the investment and insurance giant, has launched a competitive two-year fixed rate mortgage at 3.35 per cent, the only one of its kind. In a return to an older style, it is allowing advisers to talk directly to an underwriter without any credit scoring involved.

 

The new mortgage, provided by Hanley Economic Building Society, comes with GBP100 booking fee and an administration fee of £1,399, and is also available to a maximum loan-to-value of 75 per cent.

 

The head of mortgage products at Legal and General, Martyn Smith, pointed out that Credit scoring has its place but complex prime cases are not always catered for by this approach. Ditching credit scoring is an innovative, back to basics way of looking at lending and the rate on this product is extremely competitive too.

 

The company's website provides listings of mortgage advisers in your area, who are all members of Legal and General's mortgage network, LGPSL. However, there are some worries that Legal and General may make it harder for applicants with loan multiples, existing debt and other properties, as it will be considering applications on a case-by-case basis rather than the more general credit scoring approach.