The new range, launched on 21 January 2005, signifies a bullish approach with BM claiming they are throwing down the challenge to other lenders.
The light adverse range includes a two-year fixed at 6.69 per cent in non-conforming status and 6.89 per cent in non-conforming self-cert. Both the products offer £250 cashback.
Also included is a light adverse tracker at 6.55 per cent (BBR plus1.8 per cent) in the non-conforming status and 6.79 per cent (BBR plus 2.04 per cent) in non-conforming self-cert, both products having a £350 cashback.
Rates on the three-year trackers are 6.45 per cent in non-conforming status and 6.69 per cent in self-cert, also both with a £350 cashback.
There are early repayment charges starting at 5 per cent in the first year declining over subsequent years. The range covers products from the smallest adverse to BM’s top level.
Matt Grayson, public relations manager at BM, said: “Brokers don’t need to be specialists in the non-conforming market as they can secure a decision online. There is no difference between processing a mainstream mortgage and a non-conforming mortgage.”
James O’Reilly, senior products manager at BM, added: “We intend to raise awareness in brokers and make life uncomfortable for our competitors with the strength of this range.”
Andrew Seymour, chairman of Optoma, said: “I believe this move will trigger a range of new products from other lenders in the non-conforming market. They will be forced react with more competitive products.”
Keith Dearling, director at Advantage Home Loans, said: “It comes as no surprise to see BM Solutions launching a new range which falls in line with other non-conforming lenders, all trying to capture their market share and stimulate what will be a very buoyant market sector in 2005.
“They aren’t the first and they certainly won’t be the last to launch a new range.”
