Initial mortgage loan offers will be fixed at 6.1 per cent for two or three years with no extended early repayment charges (ERCs).
Future Mortgages’ non-conforming products have free valuations and no application fees in England, Wales and Northern Ireland as well as on non-conforming right-to-buy and remortgages in Scotland. In addition, em- has onsite offers and completions teams to ensure the processing of cases is handled efficiently.
Guy Garrard, director of business development at em-, said: “We are delighted Future is now offering a 100 per cent LTV range through our branded lending arm, em- homeloans. This, combined with no extended early repayment charges, means that there should be a very positive response to this range in the market.”
Andy Frankish, managing director for Mortgage Talk, said: “On the face of it the rate sounds good. The higher rates reflect the risks involved with a 100 per cent LTV loan. My initial reaction is that it’s the type of product we need more of as first-time buyers try to get on the property ladder. It will be interesting to see the full criteria and fees. Though the product has higher fees, some people are prepared to pay the full fee to get a property. This mortgage product gives us ammunition to get more and more people onto the property ladder.
Frankish added:“The rate is slightly high by comparison to others, like, for example, the Royal Bank of Scotland, which offers 5.93 per cent on similar terms. But because it’s backed by Future Mortgages, we would expect the criteria to be more flexible than other offers, though we would need to see the full product details.”
