With effect from 1 August, FNMC, has reduced the time required for any Remortgage Cashback customer to achieve a Standard Variable Rate mortgage - currently 5.74% - to just two years. The SVR is applied as a reward for 24 months’ good payment, regardless of the borrower’s lending history prior to remortgaging.
The company has also launched extended fixed and discounted rate offers on both the full status and the self-certified products in the Remortgage Cashback range, with rates starting from 6%.
The new deals make Remortgage Cashback available to full status applicants on a 1.99% discount until November 2004, giving a rate of 6.0% (APR 6.1%), or alternatively customers can choose a fixed rate of 6.24% (APR 6.2%) until November 2004, Self-employed, self-certified applicants can select a fixed rate of 6.49% (APR 6.6%) and a discounted rate of 6.99% (APR 6.8%).
The discounted and fixed rate offers mean some sub-prime borrowers can now achieve a standard variable mortgage rate comparable to those available on the high street without ever having to pay the full rate for Remortgage Cashback (currently SVR + 2.25% for full status case -7.99%/APR6.6% - and SCVR + 2.5% for self-certified cases -8.74%/APR 7.1%).
Remortgage Cashback gives 5% of the loan amount as cashback, with the money available to settle the redemption fees on the applicant’s existing sub-prime mortgage. However if the applicant maintains their mortgage payments for two years, the cashback funds are wiped from the account.
The LTV limit available to both full status and self-certified Remortgage Cashback applicants has been raised to 85%. The minimum age for applicants is 21, and loans may range from £25,001 to £150,000.
Because Remortgage Cashback is designed to reward good payment and a better credit performance it is not available to applicants with CCJs, defaults, mortgage arrears, IVAs, bankruptcy or repossession issues in the 12 months before application.
Gerry Bell, Marketing Manager, said: “The re-launch of one of our most popular product ranges will provide even more customers with the perfect chance to get out of restrictive sub-prime mortgage arrangements, without having to suffer from what are often quite unreasonable redemption charges. They could save hundreds of pounds more, by switching to one of our new improved remortgage deals.
“ The revamp of Remortgage Cashback consolidates FNMC’s comprehensive range of ethical credit-impaired mortgages, which actually assist people not just now but also as their mortgage progresses.”
