The Britannic Money Flexible REStart Homeloan (FRESH), will give customers with less-than-perfect credit ratings, the chance to apply for a Current Account Mortgage from the industry’s longest established provider of this innovative mortgage product.
FRESH will initially be available through three specialist mortgage packagers – All Types of Mortgages (AToM), National Guarantee and Solent Mortgage Services (SMS).
Bob Perks, Britannic Money Business Development Director, commented: “This is a perfect mortgage for customers who want an opportunity to repair their credit rating. The in-built flexible features encourage customers to overpay and build up a cushion for less certain times. The option to apply for a current account after the first year puts the additional benefit of offset within the reach of these customers for the first time ever.”
It is anticipated that the product will become available through a wider distribution strategy early next year.
Rachel Ramsden, head of marketing at Britannic said: “We’re not talking to anyone at the moment in terms of distribution, but when we do, we could be talking to intermediaries as well as packagers.”
The tracker product is linked to the three month LIBOR for the life of the loan and is offered at a 1.5 per cent twelve month discount. Interest is calculated daily on this flexible account which allows over and under payments and payment holidays of up to ten per cent of the original capital each year.
James Mayne, in strategic development at Britannic Money said interest rates were at nowhere near the heights of six to seven years ago, which would allow the product to be used like a credit repair tool to bridge people back into the mainstream lending market.
“The sub-prime arena has seen remarkable growth and I think now there’s less of a stigma attached to this area of lending. Brokers have developed more coinfidence too since the days when certain brokers called the integrity of the sector into question. “
