The product enables homebuyers to borrow up to 130 per cent of the property value with no higher lending charges and is aimed at first-time buyers, people with no deposit and those requiring cash and debt consolidation.
It was piloted in Northern Ireland for nearly two years before it’s launch UK-wide.
An article in The Times on18 January reported that Bradford & Bingley, of which Mortgage Express is the specialist lending arm, faces the threat of an inquiry.
Nigel Beard, Labour MP for Bexleyheath and Crayford and a member of the Treasury Committee, told The Times: “I would like to see the committee investigate such high-value loans before they become a trend.”
The newspaper also reported that consumer groups believed the mortgage deal could plunge borrowers into negative equity.
Charles Gooding, managing director at First4brokers, said: “It is a bold move by the lender. The public don’t fully understand lending requirements and such reports don’t help.
“It is not a mortgage product for everyone but if handled correctly it’s especially relevant to first-time buyers in South East England.”
Rod Murdison, proprietor of Murdison & Browning, said: “Why should lenders be criticised for innovative products especially as the government are not willing to aid first-time buyers?”
Roger Hillier, product development manager at Mortgage Express, said: “As a responsible lender it was crucial that we pilot Max 130. The two years it was available in Northern Ireland helped us better understand this market, gauge demand and listen to broker feedback.”
Sean Sloan, partner of the Mortgage Shop in Northern Ireland, said: “This product is excellent because it is a prudent way of meeting the genuine needs of customers.
“I have found it to be extremely useful for a range of customers who are short on equity but where affordability is not a problem.”
