The marketing campaign instigated by Pink is based on products carrying no early redemption charges across buy-to-let, self-certification and non-conforming product ranges.
The four products all track the Bank of England Base Rate. The self-certification and buy-to-let products are both priced at 0.94 per cent above Base Rate for two years up to a maximum of 85 per cent loan-to-value.
The non-conforming products are priced at 1.95 per cent and 2.24 per cent above Bank Base Rate for status and self-certification applications respectively.
The status product offers up to 90 per cent loan-to-value and is available for applicants with up to two months mortgage arrears and £5,000 of County Court Judgements.
The self-certification option allows up to three months arrears and £7,500 worth of County Court Judgements. The loan-to-value is limited to 85 per cent.
David Copland, sales and marketing director at Pink, said: “I’m delighted with the products. They demonstrate a commitment to the FSA’s principles of ‘treating customers fairly’ and, as they are linked to the Base Rate, encompass transparency.”
James Cotton, mortgage specialist at London and Country, said: “It’s good to see more adverse credit products with no early redemption charges to give borrowers more freedom.
“As always, there is a small rate premium to pay for no tie-ins so brokers must assess if this is worth paying. Anyone who is unlikely to be eligible for a mainstream deal within the next two years may not benefit from the lack of early redemption charges.
“However, these deals would suit those clients whose credit situation is close to full repair.”
