The 95 per cent LTV fixed rate on the near prime online product (only available via an online decision in principle (DIP)) is 6.44 per cent and the fixed rate on the “8” range near prime product is 6.59 per cent. These two fixed rates run for two years, to 1 September 2008, and are available for purchase and remortgage on full status applications only. There is no higher lending charge payable and early repayment charges are 6 per cent during the fixed rate period followed by 1 month's notice thereafter.
On both products, borrowers must have no arrears in the last 12 months and any bankruptcy or Individual Voluntary Arrangement (IVA) must be at least three years discharged or satisfied. The near prime online product accepts £1000 CCJ/defaults in the last two years with none in the last six months, and the near prime product accepts a maximum of one (unsatisfied) CCJ up to £500. The current SPML offer of paying the first three mortgage payments on time to gain a refund of one month’s payment does not apply to these 95 per cent LTV fixed rates.
Liza Gascoigne, SPML’s head of product development, said: “We are delighted to be offering fixed rates on our near prime products for the first time. For borrowers at 95 per cent LTV, the chance to fix payments for two years offers peace of mind in the early years of the mortgage, and the added bonus on these fixed rates is that no higher lending charge is applied. There are limited funds for these fixed rate offers, so early applications are advisable.”
