This launch sees the Haywards Heath-based lender widening its already extensive core product range to position themselves closer to the high street than at any time during their eight-year history.
Near Prime is the latest addition to Preferred Mortgages' innovative product range. Attracting customers with very minor credit problems, the new product will bridge the gap between the lender's existing non-conforming products and those currently available from the high street.
The range of products provides solutions for customers with varying credit problems offering competitive rates from just 4.59% (subject to Libor at 4.20%) until 1 October 2005 and 4.99% until 1 October 2006.
John Webster, Business Development Director, comments: "Our new Near Prime product offers an alternative for customers who, despite having only minor credit problems, find it difficult obtaining a mortgage from a high street lender. Recent research reveals that due to the recent favourable economic climate, non-conforming customers are not finding themselves
facing the same depth of credit problems as before, but despite this 1:4 people still have difficulty obtaining a mortgage from mainstream lenders."
Webster adds: "It's understandable that customers with minor credit problems don't want to pay the rates associated with heavier adverse products - and why should they. With this in mind we have developed a product more in tune with customer needs and the changing economic environment."
A summary of the key features of the Near Prime product include:
* 1 year discount product until 01/10/05 4.59%* up to 90% LTV
* 2 year discount product until 01/10/06 4.99%* up to 90% LTV
* Self Certification 1 year discount product until 01/10/05 from 5.09% up to 90% LTV
* Re-mortgage available up to 90% LTV
* Generous Income multiples of 3.75 + 1 or 3.25 x joint income
multiples
* Allows for up to £500 CCJ per applicant and missed payments
