Offered with prime and mild adverse credit status options, the discounts are 2.25 per cent in year one; 1.75 per cent in year two; and 1.25 per cent in year three with no MIG charged or overhanging redemption period.
A key feature of the product is that two normal Future Mortgages restrictions do not apply. These are (in the case of remortgage) the ceiling of 20 per cent of the loan that can be used for ‘any purpose’, and the top limit of 30 per cent on existing mortgage payments. Enhanced income multiples apply (3.75 plus 1 or 3.25 times joint), and up to 10 per cent of the outstanding balance can be paid within any financial year without penalty. Both options are LIBOR tracker products and can be used for purchase and remortgage.
CMLS director Damian Cain, commented: “These products combine a high LTV for self-certification with the ability to raise capital for any purpose, plus no restriction on the level of increased payments or any verification of income. This makes them ideal for the self-employed market where recent increases in the borrower’s income is not yet reflected in their annual accounts.”
The completion fee for the loan is £395 added to the loan with a maximum loan size of £300,000.
