The product tracks the Bank base rate at 2.69 per cent for two years, offering an initial pay rate of 6.94 per cent.
A maximum of £2,000 CCJs are acceptable as long as none have been registered in the last 12 months, and a maximum of 2 months arrears can be considered, provided they have not increased over the past 12 months. In addition, there is no early repayment charge overhang, so the client has the option to remortgage to a prime product, as by that time they will have three years’ clear credit history.
Intermediaries can submit applications, including those at 95% loan to value, online to BM Solutions and receive 1% broker commission.
David Copland, sales and marketing director at Pink Home Loans, comments: “This product caters for the light adverse section of the sub-prime market and as the rate tracks Bank base rate it offers greater transparency for the borrower. It would be an ideal product for a first time buyer, for example, who has had some credit problems in the past and wants to get back on track, but is unable to provide a bigger deposit.”
Key selling features
- Up to 95% LTV accepted
- First time buyers and home-movers accepted
- No early repayment charge overhang
- CCJs: maximum £2,000 (none in last 12 months)
- Arrears: maximum 2 months (not increased in last 12 months)
Product details
- Funded by: BM Solutions
- Product: Sub-prime tracker
- Rate: 6.94% - BBR plus 2.69% for 2 years (reverts to BBR plus 1.99%)
- Max LTV: 95% LTV up to £150,000
- Max loan: £500,000 up to 80% LTV
- Early repayment charges: 5% of amount repaid in year 1, 4% in year 2
- Broker commission: 1% for on line apps, 0.50% for paper apps
- Arrangement fee: £449
- Other: Via direct submission only
- Contact: For more information visit www.pink.uk.net
