With Lehman Brothers having recently acquired LMC, John Prust, director of UK services and marketing at Lehman Brothers’ mortgage capital division, admitted that LMC would be focusing on the niche sectors that it had previously specialised in.
Its product range has been restructured and will be based on the number of CCJs rather than value, and the loan-to-value (LTV) bandings will be reduced. LMC has also launched two-year fixed rates across the range. 100 per cent buy-to-let (BTL) rental cover affordability, calculated at initial pay rate has also been launched with a 90 per cent LTV option also available as part of the deal.
Prust said: “We are confident and optimistic, and having watched the movement of the market, we have made competitive changes.”
Changes to the SPML range include the introduction of its no early repayment charge two-year fixed rate near-prime product and the reduction of many of its two and three-year fixes. A two-year fix, priced at 5.14 per cent across its range, has also been launched, in addition to a BTL product available at 90 per cent LTV.
As part of the enhancements to the Preferred range, two and three-year fixed rates, starting from 5.69 per cent with no higher lending charges, have been added, with income multiples replaced with affordability calculations across the range.
Commenting on the LMC range, David Hollingworth, mortgage specialist at London & Country, said: “Dropping to 90 per cent for BTL is becoming the norm. However, in its non-conforming suite, the fact that it is taking into account the number of CCJs rather than the amount should bring the range to intermediaries’ attention.”
