These will enable mortgage advisers to offer the best possible service to applicants wishing to purchase their council houses before any future cut backs to Right to Buy are made.
Enhancements include the ability to ‘partially’ self certify income up to 80% LTV (ie, production of an accountant’s letter of affordability for the self employed, or a payslip/ bank statement showing regular credit entries for the employed).
For applicants with a past history of credit problems, the choice has been widened to include (at 75% LTV) arrears of four payments missed in the last 12 months or two in the last six months, plus up to £5,000 of CCJs. In addition, at 65% LTV, borrowers with ‘light adverse credit’ (ie, a bankruptcy discharged one year ago/ an IVA satisfied one year ago) will pay only 2.00% above LIBOR (which currently stands at 4.2%).
All of SPML’s Right to Buy schemes (apart from the 65% LTV ‘Light Adverse’ product) are offered with a 1.50% discount to 1 December 2003, making them among the most competitive in the market.
John Prust, sales and marketing director at SPML, comments: "The recent reports that the Right to Buy may be under threat has opened up a big sales and marketing opportunity for mortgage advisers and packagers who specialise in Right to Buy business. Many council tenants who have, so far, remained undecided about taking up their Right to Buy will now be looking to buy their homes before any changes are made. The SPML range of Right to Buy schemes gives these brokers a full suite of mortgages products, combined with unrivalled service standards."
