Rates are 5.39 per cent to 5.79 per cent up to 85 per cent loan-to-value (LTV) and 5.49 per cent up to 90 per cent LTV. There are early repayment charges (ERCs) of 5 per cent and no higher lending charges (HLCs). Payment holidays are also allowed.
A range of two-year discounted rates has also been introduced for 75, 85 and 95 per cent LTV. Discounted rates begin at 4.94 per cent for 75 per cent LTV to 5.70 per cent for 95 per cent LTV.
The lender said the range had been introduced in response to broker research, which indicated strong consumer demand for two-year deals. All products will revert to product variable rate of Bank of England Base Rate plus 2 per cent after the discounted rates came to an end, regardless of LTV.
Emma Paine, Mortgage Express product development manager, commented: “These are the first two-year products in our self-certification portfolio and have been launched to offer borrowers a competitive rate with no extended redemption penalties. Our research among brokers indicated a growing desire for the flexibility a shorter deal offers and we have responded to this need.”
Ray Boulger, senior technical manager for John Charcol, said: “The 90 per cent LTV rate is very good value. There is a lot more competition in 85 per cent LTV, but the product rates are certainly respectable. The basic criteria and flexibility is very good and MEX doesn’t impose HLCs. This is a useful addition to the range of self-certification mortgages available. But it’s always worth considering fast-track, if it’s an option. The customer will naturally get cheaper rates, because it’s a prime deal.”
