The Parachute mortgage, designed in association with Amber Homeloans, is undergoing a reprice with the underlying rate changing from LIBOR to the Bank of England base rate.
The Parachute Mortgage is a menu-style, sub-prime product where loadings are added or subtracted according to the borrower’s circumstances. The loadings remain the same, meaning pay rates on the revamped product will be lower across the entire range.
David Copland, sales and marketing director at Pink Home Loans comments: “This move will appeal to borrowers who want their mortgage rate to be linked to the externally set Bank base rate, rather than LIBOR. Traditionally, sub-prime products have been linked to underlying rates such as LIBOR and not BBR.
Pink is keen to introduce greater transparency and simplicity to its product ranges and has worked with Amber Homeloans to redesign the Parachute so that clients can take advantage of a historically low base rate.”
Mike Perry, head of sales and marketing at Amber Homeloans comments: “Following its launch as an exclusive product via Pink, the Parachute has been highly successful, as intermediaries can tailor a product and rate for their clients’ specific needs. Amber has built a good working relationship with Pink since the launch in 2001 and I hope that the change of linking to Bank Base Rate will further enhance the Parachute's reputation within the Intermediary market."
Additional benefits of the redesigned product include a revised arrangement fee of £395 and an interest rate that reduces by 0.5% per year on 12 months’ satisfactory payments being made, until the rate reaches 1% above Bank base rate.
Key product details:
Rate: From 4.5%*
*Loadings are added or subtracted according to borrower’s circumstances
Underlying rate is Bank base rate plus 1%
Minimum loan: £25,001
Maximum loan: £500,000 up to 75% LTV
Maximum loan to value: 85% up to £400,000
Income multiples: 3.5 times principal plus second, 2.75 times joint
(first time buyers: 3.25 times principal plus second, 2.5 times joint
Arrangement fee: £395
Redemption fee: 4% in year 1, 3% in year 2, 2% in year 3
Conditions: Available via direct and packaged submission routes
Introducer’s fee: 1% (min £300, max £5,000)
Contact: Visit Pink online at www.pink.uk.net for more information
