Trevor Pothecary, chief executive of Mortgages plc, said: "With this arrangement in place, Dunfermline Building Society can provide their customers with a one stop shop for mortgage requirements and we, in turn, also enhance our distribution channel to a wider audience. The Mortgages plc ethos has always been about making our products accessible to every borrower, whilst still maintaining a high level of service. This arrangement enables us to do just that."
The first products on offer have been designed for borrowers who have current or historic credit problems, and are also available on a self-certification basis.
There is a choice of either a one year fix with an initial rate of 5.69 per cent for borrowers with CCJs and arrears. It has a maximum loan-to-value (LTV) of 75 per cent for purchase, and reverts to the standard variable rate (SVR) plus 2 per cent from June 2003.
Or a one year fix with an initial rate of 6.19 per cent for borrowers with CCJs and some arrears. It has a maximum LTV of 85 per cent for purchase, and reverts to the standard variable rate (SVR) plus 2.5 per cent from June 2003.
Brian Morton, general manager sales and marketing at Dunfermline, said: "This agreement allows the Society to extend further the facility of home purchase to those who do not necessarily fit into a set of rigid guidelines. With support from Mortgages plc, we can continue to promote financial inclusion as it affects house purchase and help more prospective buyers achieve their ambition to own their own home".
