The majority of the lender’s mortgages up to 80 per cent LTV will now enjoy a discount of 1.75 per cent, with most mortgages at 85 per cent LTV benefiting from a 1.5 per cent discount. The discount for 90 per cent LTV mortgages remains at 1.25 per cent.
Mortgages plc says the changes mean that over three times as many products will now be available with its highest discount of 1.75 per cent. The lender says good discounts are important to brokers because they make the initial pay rates lower and therefore more attractive to borrowers.
Peter Beaumont, Sales and Marketing Director, Mortgages plc, says: “We know that discounts are attractive to borrowers because they reduce their outgoings when they take out a new mortgage, and this is a key selling point for brokers. As well as wanting the lowest rate possible, a discount period can be a big help to borrowers in the early months of their mortgage when they often have large amount of expense on furniture or home improvements. These enhanced discounts are part of Mortgages plc’s strategy to offer highly competitive products to the non-conforming mortgage market.”
The increased discounts are available on all of Mortgages plc’s Near Prime, Super Light, Light, Medium and Heavy products, and are effective from 1 October 2003.
