Improved rates - rewarding lower LTVs
Preferred will now offer a 1.50% discount for loans up to 75% LTV, with rates starting at 5%. For loans of 75.01% - 90% LTV, a discount of 1.25% will apply. The discount period has been extended to 30 June 2004.
Increased LTVs - adding more options to the range
The new range will offer 90% re-mortgages for verified income and self-employed plus, in the light adverse category. For self-certification, self-employed has increased from last year's maximum ltv of 80% to 85%.
Increased income multiples - opening up affordability
Income multiples have increased to 3.75+1 or 3.25 x joint which improves affordability and is only available from one other non-conforming lender.
Larger loan sizes - made easier
Larger loans have been simplified with the maximum loan size in verified light and mid adverse up to 75% LTV from £750,000 to £1 million. Preferred will be approving loans up to £500,000 for self-certification in light and mid adverse up to 80% LTV.
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Simon Biddle, Marketing Development Manager commented: "The new range is confirmation of Preferred's commitment to intermediaries and our mortgage customers. Our range launched in 2002 was a revolution - this is an evolution of that. We set the pace of the market last year and will continue to do so in 2003.
"There is a fine line between risk and offering end users unique products and we believe with this range the balance has been reached. Our expertise and experience allows us to take underwriting decisions others would not. The new features make the range one of the most competitive in the market place."
The new product guide clearly illustrates the simplified structure of the range making it easier to use and more accessible to intermediaries as well as brokers dealing specifically with non-conforming and specialist mortgages.
*Source Mortgage 2000 (dated 29/1/03). Case study has £3K CCJ and 3 months mortgage arrears - none in the last 3 months. 75% purchase verified income, year 1 with discount rate at 5%.
