Step One Finance introduces Zero ERC Lending, enhances criteria and strengthens underwriting leadership for 2026

22 January 2026

Step One Finance, the specialist consumer lender, has announced a series of product and policy enhancements following its New Year review, designed to give borrowers greater flexibility and to supportadvisers with faster, smoother outcomes.

With immediate effect, all Step One Finance plans will now feature zero fixed early repayment charges, withjust 28 days’ notice required to redeem. This represents a significant change to the lender’s proposition, giving borrowers greater freedom to repay or refinance, while offering advisers increased confidence when recommending solutions.

To support the removal of fixed early repayment charges, Step One Finance has also enhanced its lending criteria. Residential AVMs are now available up to 95% LTV (previously 85%), while Buy to Let AVMs have increased to 90% LTV (previously 75%). Rental coverage has been simplified, and greater flexibility has been introduced for married sole applicants, CIS workers, and self-employed borrowers.

Neil Molyneux, Director of Sales at Step One Finance, said:

“These enhancements reflect exactly what our broker partners have been asking for. Removing fixed early redemption charges gives borrowers genuine flexibility and allows advisers to recommend our products with even greater confidence.”

Alongside these product enhancements, Step One Finance has also announced that Kerry Vince has been promoted to Head of Underwriting. Kerry is well known to the intermediary market and brings extensive experience to the role, reinforcing the lender’s focus on strong underwriting, consistency and service as volumes grow.

Michael Childress, CEO of Step One Finance, added:

“This is an important step in the continued evolution of our proposition. Alongside the product and policy enhancements, strengthening our underwriting leadership ensures we remain focused on quality, consistency, and service as we grow.”