This is N&P’s first venture into the credit impaired market.
Gary Lacey, group product manager for N&P, said: “Credit impaired mortgages are a growing market and we have looked carefully at how we should be helping our members before launching these products. A successful pilot of these two mortgages has confirmed that there is demand that is not already satisfied in the existing market. Whilst we are very cautious about lending in what is a higher risk area of mortgage business, this type of lending has become very commonplace and using our affordability index means we have a clearer picture of an applicant's earnings and outgoings and a more accurate view on whether they can really afford the mortgage.”
Product Details:
- 4.9% discounted variable rate (1.65% discount) for one year
- SVR thereafter (currently 6.55%)
- APR 6.6%
- Maximum 85% LTV
- £395 Reservation Fee
- Early repayment charge of 5% in first three years.
- Maximum three CCJs within a total maximum value of £2.5K (these can be either satisfied or unsatisfied)
- CCJs to Customs & Excise or Inland Revenue must be repaid from advance
- Maximum two mortgage arrears in last year (these must be settled at application), no instances of mortgage arrears in the last 3 months.
- Bankruptcy discharged over one year permitted
- No Individual Voluntary Arrangements (satisfied or continuing)
- Affordability model used for branches & Contact Centre and income multiples of 3.75 + 1 or 2.75 joint used for introduced channel.
Product 2
- 6.74% two year fixed rate
- SVR thereafter (currently 6.55%)
- APR 6.9%
- Maximum 85% LTV
- £395 Reservation Fee
- Early repayment charge of 5% in first two years
- Maximum three CCJs within a total maximum value of £2.5K (these can be either satisfied or unsatisfied).
- CCJs to Customs & Excise or Inland Revenue must be repaid from advance
- Maximum two mortgage arrears in last year (these must be settled at application), no instances of mortgage arrears last three months.
- Bankruptcy discharged over one year permitted
- No IVAs (satisfied or continuing)
- Affordability model used for branches & Contact Centre and income multiples of 3.75 + 1 or 2.75 joint used for introduced channel
N&P’s new Light Adverse mortgages are aimed at:
- Customers who are looking to move away from a previous bad credit position
- Homebuyers with arrears and/or CCJs that have been settled or where a bankruptcy has been discharged.
- Homebuyers who have suffered from bad debt after relationship breakdown but are now taking steps to get back on track.
