The offer is valid on applications received by SPML between 5 June and 17 July 2006, which complete on, or before, 30 September 2006. For borrowers to qualify for the offer, SPML must receive the first three monthly mortgage payments in full from the borrower by direct debit on the due date. Any borrower that qualifies will receive one month’s refund within four weeks of the third payment.
John Prust, sales and marketing director at SPML, said: “This offer could amount to new mortgage cases receiving a considerable cash benefit, if the terms are adhered to. This innovative special promotion not only offers useful benefits to the consumer, but it also gives intermediaries an opportunity to increase their business levels by making this money-saving opportunity known to their new mortgage clients.”
But Thomas Reeh, chief executive at brokerage blackandwhite.co.uk, believed the deal would not overcome the fact SPML charges valuation fees. He said: “The offer sounds good, but SPML would get truckloads more business by dropping its valuation fees. Non-conforming customers are very conscious of the fees they’re charged, as they just don’t have the money. From a customer’s perspective, it’s a great sell to say they can get a free valuation. SPML needs to understand how it works at the sourcing end, as it always comes behind other lenders which offer free valuations. Unless an intermediary remembers this specific deal, it won’t come up during the sourcing process.”
Andy Frankish, managing director of Mortgage Talk, added: “It is a nice sweetener and a good incentive by SPML, but if the product itself is not competitive in the market, then the cashback won’t help. The product has to be right for the customer and fit their individual needs and circumstances.”
