With rates starting from 7.89 per cent and a 90 per cent maximum LTV, the product has been designed for prime-to-medium-adverse borrowers, with self-cert options.
It is to be distributed through five UK packagers - one of which is Trustguard and lending eligibility will be assessed via an online credit scoring system.
Chris Simm, head of second charge business at Trustguard, said: “Brokers are finding it difficult to remortgage a lot of individuals with some adverse history and this product provides them with the flexibility to offer a very competitive secured loan option. It gives them another much-needed string to their bow at a time of restricted availability of appropriate mortgages.”
Minimum borrowed amount is £25k and the maximum lending ceiling is £150k.
The rate is fixed until 1 March 2011, but there is an early repayment charge of 5 per cent in year one, 4 per cent in year two and 3 per cent in year three.
A £595 fee is payable and there is a generous procuration fee.
