Already a leading player in the sub-prime market, LMC has targeted the near prime market as the next growth area by launching eight new products.
They include three full status products, three self-cert products and two buy-to-let products. They are priced from 1.75% to 2.75% over Bank of England base rate, and are available with either:
- 0.75% discount for two years from completion with no early repayment charge overhang (early repayment charges are 3% in year one, 2% in year two)
- Three year stepped discount from completion, 1.0% discount year one, 0.50% in year two and 0.25% in year three – there are no overhanging early repayment charges
The maximum amount of County court judgements that an individual can have is £750 and they must have missed not more than one mortgage payment in the last 12 months. The products are not available to discharged bankrupts or people who have been, or who are currently under an Individual Voluntary Arrangement (IVA) – LMC’s core range of higher gross interest margin products are available to these types of applicants.
Mark Wilson Director of Sales, said: “We have undertaken extensive market research in order to ensure that our near prime products are highly competitive. The products are linked to the Bank of England base rate and offer initial discounted payments rates from as low as 5.50%. We have ensured that early repayment charges only apply during the two or three year discount period – our research showed that this was an important sales feature which brokers and customers demanded”
The products are marketed via a network of LMC approved packagers to whom the full product details and broker commission levels are available.
Online Key facts illustration for these products can be found at www.l-m-c.co.uk
