These include increased discounted rates and reduced self cert loadings with cash back offers on discounted rate products. Higher loan-to-values (LTVs) have been introduced on near prime fixed rate products, with extended fixed rate end dates. Lending criteria have also been enhanced and a revised layout product guide is now available.
On SPML’s discounted rate options, the one-year discount has increased to 2.35 per cent from 2.25 per cent and the end date has been extended to 1 December 2007. The end date for the two-year discount has been extended to 1 December 2008 and a cash back of £500 on every completed discounted rate case (one and two year) is paid with the procuration fee. Also across both one- and two- year discounts, the loadings for self certification options have been lowered to 0.25 per cent on the Almost Prime, Near Prime, and Minor, Light and Medium Adverse schemes at 85 per cent LTV, and on the Heavy Adverse and Fast Track schemes at 80 per cent LTV.
End dates have also been extended on fixed rates, to 1 December 2008 (two year fix) and 1 December 2009 (three year fix). Fixed rates start from 5.59 per cent, depending on LTV and credit status. 95 per cent LTV options are available for the first time on the Near Prime and Almost Prime (previously “Near Prime) online ranges.
Enhanced lending criteria are now also in operation. The minimum length of self employment (self certification loans only) has been reduced from 12 to six months, and employed applicants’ income (not self cert) must be substantiated by an employer’s reference or two out of the last three months’ payslips (previously last three months’ payslips). Any overtime, bonus or commission being included must be supported by an employer’s reference. Married or civil partnership applicants are now able to apply jointly or separately, whereas previously only joint applications were considered.
The SPML product guide has been redesigned to show at-a-glance pay rates, calculated at the current LIBOR rate, across all discounted, fixed and variable rate options on all SPML “8” and Online product ranges.
Will Ryan, SPML’s head of marketing, commented: “SPML believes that the powerful combination of competitive products and enhanced criteria demonstrates its commitment to its introducers by providing them with the means to attract greater business volumes by accommodating a wider range of applicants’ needs. The new, easy-to-use product literature has been road tested with a selection of our packager panel and has already received an enthusiastic reception, so we are confident that it will make access to SPML products quicker and easier for all users.”
