The exclusive product, introduced in conjunction with Preferred, is at Libor plus 5.25% for LTVs up to 75%, with a one-year discount of 1.5%. This gives an initial rate of 8.4%. As an additional saving, Bananas is offering a refund of valuation fee, worth up to £200, on selected cases worth in excess of £100,000.
For LTVs up to 85%, the product is available at Libor plus 5.75% with a one-year discount of 1%, giving an initial interest rate of 8.9%.
The mortgage allows an adverse credit history, Individual Voluntary Arrangements (IVAs) if well conducted for at least six months, and discharged bankrupts. No references are required, unless with an existing sub-prime lender, then only proof of three payments in the last six months is needed. Income multiples are 4.75%x single, or 3.75x joint.
Sue Cox, Business Development Manager at Bananas Inc, said: “This product is very competitive when compared to the other mortgages that are offered to heavy adverse borrowers. This is especially the case when the refund of valuation is taken into account.”
There is a procuration fee of 1% and a redemption penalty of 6% in year 1, 6% year 2 and 6% year 3. There is a £495 completion fee, which can be added to the loan, and MIG is charged from 75%.
Bananas Inc has a team of Preferred underwriters working in-house at its Fareham, Hampshire offices ensuring quick turnaround of cases.
