The Lifeline Remortgage Scheme allows a client to remortgage their home after a process where a solicitor would be instructed to liaise with creditors. As part of the scheme the appointed representatives (ARs) are charged with monitoring the bankrupt to agree a settlement figure, which is secured by a loan.
A barrister, appointed to present the agreement in court, and solicitor then liaise with the creditors to ensure the bankruptcy is officially annulled by a court order. The client can then remortgage their property through Bananas Inc.
Interest rates vary depending on the specific circumstances of the applicant, with fixed rates and discounted rates available, as well as self-cert and status options.
The Lifeline Remortgage Scheme offers a fee as well as the remortgage procuration of 1.25 per cent to intermediaries. Maximum loan-to-value (LTV) on the remortgage is 85 per cent. Mortgage insurance guarantee (MIG) is charged from 75 per cent and redemption penalties vary depending on scheme chosen.
Bananas Inc said the scheme would remove the possibility that former creditors make a future claim on a client’s assets and frees them, their property and assets from the penalties of being undischarged and discharged bankrupts.
Sue Cox, business manager at Bananas Inc, said: “This provides bankrupts with a means by which they will be able to move from a situation where they can’t remortgage or borrow money to one where they can have a fresh start. For those on the verge of bankruptcy it is attractive as it can be used to stop the process happening in the first place.”
Wayne Smethurst, senior partner at The Finance Centre, said: “This is a similar product to one we launched in April. It is no surprise to me, as we identified it as a growing market 12 months ago.”
