Max 130 is designed to meet the needs of first time buyers, people without a deposit and those that require cash and debt consolidation.
Before its launch, Max 130 was piloted in Northern Ireland for nearly two years. It will now be available through intermediaries in England, Wales and Scotland.
There are two rates currently available with Max 130: a 3 year fix at 6.49% and a 2 year discount of 0.31% (current pay rate of 6.24%). The income multiples are 3.75 for single applications and 2.75 for joint applications. The amount that customers can borrow is based on their income and ability to repay.
The amount of the loan over the property value can be used for any legal purpose, such as home improvements, capital raising and debt consolidation. This gives customers flexibility to manage their finances.
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’’.
Roger Hillier, Product Development Manager, 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’’
"We are therefore confident about the need for a product such as this, designed specifically for first time buyers struggling to get onto the housing ladder, in addition to those looking to consolidate credit cards, personal loans, and second charges into one competitive loan. This will make repayments more manageable and could be a much better alternative for these customers in the long term’’ Hillier added.
