The product is fixed at 8.35 per cent for two years and is available up to 85 per cent loan-to-value (LTV). There is an arrangement fee of £995, which can be added to the loan and redemption penalties of 6 per cent for two years from completion. The proc fee is 1 per cent.
The mortgage allows up to four missed mortgage payments within the last 12 months, including those to non-conforming lenders, but no more than one missed payment can be within the last three months. Extensive CCJs and other adverse are also permitted.
Sue Cox, business manager at Bananas Inc, said: “Rises in the Bank Base Rate have made fixed rate products very appealing to many borrowers. This is particularly true for those who have got behind with their mortgage payments and have credit problems. Such individuals often think another mortgage is out of the question and lenders will give them a wide berth. That is not the case with this product.”
Alan Lakey, partner at Highclere Financial Services, commented: “While it seems like a reasonable product, it’s not outstanding. 85 per cent LTV is pretty reasonable, but the product can be beaten. Without knowing the limit on CCJs, it’s hard to comment. It will suit some people, but not many, so it’s nothing to shout about.”
