Salt believes that on balance sheet lenders will provide a more consistent and competitive mortgage source after lenders reliant on the capital markets to fund their mortgages face increasing fallout from the US sub prime market, resulting in some being unable to honour cases at the application stage.
Salt has reassessed its lending criteria in favour of those applicants committed to restructuring their debts and now will not accept applicants with increasing arrears over the last three months.
Tony Capon, Salt’s head of sales, believes that the new criteria and pricing has made Salt a competitive player, particularly in the heavy adverse market. “We see the turmoil in the market as an opportunity. As a balance sheet lender, intermediaries can have confidence that Salt will not ‘pull the rug’ out from under them. Also, introducers can be sure that when we make changes to our lending criteria we will honour cases already received and sanctioned by our underwriters.
“We remain very much committed to the unlimited adverse market where clients are, in turn, committed to restructuring their finances. Clients must have made a mortgage repayment in each of the three months preceding the application, or alternatively, be no more than one month in arrears at the date of application.
“This second criteria means they can have missed payments over the three month period but must currently be no more than one month in arrears. Either of these criteria indicates a degree of ability and willingness to make mortgage payments, regardless of arrears and missed payments on unsecured commitments, defaults or CCJs.Our approach is that such applicants deserve to be considered even in today’s market conditions”
Mortgage rates start from:
- 6.19% for prime self-cert
- 6.49% for light adverse
- 6.89% for heavy adverse
- 7.09% for heavy plus & fastrack
