Targeting those with previous debt problems, the range includes two-year fixed rate and tracker products, based on the borrowers’ credit situation.
As part of the offer, a borrower with a light adverse rating, having obtained a maximum of £2,000 in CCJs, a maximum of one missed mortgage payment in the past year, could obtain a mortgage at Base Rate plus 0.49 per cent for two years, up to 90 per cent loan-to-value.
Richard Barker, product manager for N&P, said: “Credit impaired mortgages are a growing market. While we are careful about lending in what is a higher risk area, this type of lending has become commonplace and using our affordability index means we have an accurate view of whether they can really afford the mortgage.”
Alan Lakey, senior partner at Highclere Financial Planning, commented: “The rate sounds good, which is encouraging, but I’m always concerned with tie-ins. If the range doesn’t have extended tie-ins and a massive fee then it would be an exceptionally good product.”
