The changes include:
Affordability – Mortgages plc’s affordability calculation will now be used with all Full Status applications submitted online (excluding RTB). Affordability calculations usually allow applicants to borrow more than traditional income multiples permit. In many instances, affordability calculations also provide a real alternative for self-cert borrowers. Paper based applications will still be based on income multiples.
Non-Conforming Arrears – We now accept clients who are in arrears with other non-conforming lenders on many of our products (proof of the last three monthly payments is no longer required). An additional loading may apply.
Higher Lending Charge (HLC) – The product range includes a HLC Free Option, which gives clients the choice of either a lower payment rate with a separate HLC, or a slightly higher payment rate with no HLC.
New LTV Banding - A new 65 per cent LTV banding has been introduced on the Fastrack range, offering highly competitive rates.
Cascade underwriting – If a mortgage application does not meet lending criteria for the requested product, intermediaries will be notified when they receive a decision in principle about suitable alternative products available from Mortgages plc. As we have consistently stated, it remains the intermediary’s responsibility to ensure that an alternative product is the most suitable choice for their client.
Right To Buy - For right to buy applications, intermediary fees can be added to the loan advance (within LTV limits). Remortgages to any standard product within pre-emption will also be allowed at six months, with £150 compulsory title insurance.
Local Authority Flats - Purpose-built properties are now permissible and it is no longer essential that all properties in the block are privately owned. The maximum LTV is 75 per cent and minimum valuation is £100,000 (£200,000 within M25)
Peter Beaumont, sales & marketing director at Mortgages plc, said: “The changes being announced today represent the most significant upgrade to our product range since it was launched last year.
"Our new rates, many reduced, are now based on BBR with some new discounted deals on offer, our popular affordability calculator is now available online and across all our products, borrowers have a choice of products with or without HLCs and we now allow non-confirming refinance and many, many other new features.
“We listened carefully to packagers and intermediaries over the course of 2005 and have incorporated into our product range the vast majority of the enhancements they requested. The response from intermediaries who have helped with the development of the new range has been fantastic.”
