The three-year product is fixed until 31 October 2008 with an initial pay rate from 5.72 per cent full status and 6 per cent self-cert and an underlying rate of Bank Base Rate (BBR) plus 2.00 per cent for full status and BBR plus 2.25 per cent for self-cert.
The early repayment charges are 6 per cent of the amount repaid within the fixed rate period with no overhang. Up to 10 per cent of the loan can be repaid per annum with no early repayment charges. Net broker commission is 0.5 per cent with a maximum of £5,000. The arrangement fee is £495 and can be added to the loan which has a 90 per cent maximum LTV.
The DHLL range will allow deed of gift so that first-time buyers can effectively borrow 100 per cent of the value from family or the landlord. The products are available exclusively through Pink Home Loans
on a packaged basis only.
Tony Jones, managing director of Pink Home Loans, said: “We are pleased to be involved in the exclusive launch and distribution of these products. The fixed rate starts from 5.72 per cent at 75 per cent LTV which really sets the pace in the market for non-conforming products.”
Tony Capon, head of sales at DHLL, said: “We have worked with Pink in the past and it has a reputation for helping develop market-leading innovative products with strength and distribution.”
James Cotton, mortgage specialist at London & Country, commented: “There has been a lot of activity recently in the near-prime market making it a quite heavily-populated sector. This new offering from Pink and Derbyshire is a good one, particularly the three-year fixed rate of 5.72 per cent.”
