Mike Perry, associate director of sales and marketing at Amber, said the range of fixed rates reflected recent movements in swap rates. Swap rates are the prices at which lenders buy the money which they then lend.
He said: “I think the markets are now definitely reflecting a quarter per cent drop in rates in the near future. We should see a flood of new products from lenders as they take advantage of this.”
He added: “This is great news for brokers and their clients. Other lenders will follow our lead on these products.”
However Peter Gladdy, director of Mortgages Direct, said that Amber may have been a little premature in expecting a quick drop in the Base Rate.
He said: “Amber are probably on a safe bet when they say the next move will be down though it may not be as soon as its predicted. I can’t see any reason why the Bank of England will push ahead with a cut quite so quickly. Rates are still historically low.”
Amber’s adverse fixed rates are available for either full-status or self-certifying customers with rates of 6.19 per cent for light adverse full-status and 6.59 per cent for medium adverse full-status, both offering no ERC tie-in.
Proc fees up to 1 per cent are payable, subject to a maximum of £4,000 for direct applications. The prime self-certification product has a three-year fixed rate of 5.69 per cent available up to 90 per cent LTV with no ERC tie-in. The buy-to-let three-year fixed rate of 5.59 per cent is available up to 85 per cent LTV, also with no tie-in.
