Its near-prime range will feature fixed and tracker mortgage deals, with rates starting at 5.59 per cent on three and five-year deals. The debt-to-income ratio on the deals will be 55 per cent, which can translate up to seven times joint income.
Catch up on the industry buzz
The products are available up to 95 per cent loan-to-value (LTV) and there are no overhanging early repayment charges (ERCs). The range allows for one CCJ up to £500 and there are higher lending charges on some of the range, though it will depend on the specific product.
Paul Brett, chief executive officer of FML, said: “This range will have the highest debt-to-income ratio in the market, giving more choice. We decided to expand into the near-prime market simply because there is more of that type of business around. Something that is now near-prime, two years ago would have been considered adverse and we are moving with a competitive market. It is packager friendly and feedback we have received from them is that it is a very exciting product range.”
Register for 'Adviser Finder' here
Roy New, a London-based sole broker, commented: “Any new product that comes into the market is good for clients, subject to rates and ERCs. The fine print has to be looked at but it’s a good thing to have more lenders in the marketplace that don’t pigeonhole a client.”
