The announcement was made at the lender’s new offices within the Lynch Financial Centre.
The non-conforming products are described by Mortgages plc as “the shot in the arm the non-conforming mortgage market has been awaiting” and represent the fact that the lender now has access to cheaper money via its new parent company.
Enhancements to the new range’s lending criteria include maximum loan sizes increased to £1.5 million (full-status) and £750,000 (self-certification).
Buy-to-let underwriting is now based on 100 per cent rental cover of the product’s revert rate. First-time buyers are now acceptable up to 95 per cent LTV (85-90 per cent LTV for self-certification, dependent on product).
Remortgages are now allowed on ex-right-to-buy properties within pre-emption period. Defaults are ignored on all products at all loan to values.
Peter Beaumont, sales and marketing director at Mortgages plc, said: “Mortgages plc has ambitions to significantly increase its share of the mortgage market during 2005. The backing of Merrill Lynch has given us access to cheaper funding, something we have taken full advantage of when developing this new product range.”
Ray Boulger, senior technical manager at Charcol, commented: “The changes regarding LTVs for first-time buyers and underwriting criteria for buy-to-let products are welcome. While the rates do look attractive I would have to look at all the product specifications before being able to pass judgement.”
Colin Sanders, chief executive officer of newly-formed non-conforming lender Money Partners, commented: “The fact that this sector has seen players like GMAC-RFC, GE and now Merrill Lynch entering the market means that products are getting better and more innovative. This can only be good news for brokers and ultimately consumers.”
