This means the applicant has the ability, after three years of the fixed term, to remain on the fixed rate, to switch free of charge to a SPML LIBOR-plus margin product, or to refinance without penalty (one month’s notice required).
The five-year fixed rate (three-year ERC) is from 5.59 per cent and allows borrower CCJs of £500 (maximum of one). Borrowers that had bankruptcy discharged three years ago or more are also eligible for the non-conforming product that includes a maximum LTV of 85 per cent for house purchase and remortgages with no higher lending charge. The offer is available to both full status and self-cert non-conforming applicants.
Alan Lakey, senior partner at Highclere Financial Services, welcomed the deal: “SPML’s non-conforming range sounds extremely good and I expect that it will take up a large portion of the market when it gets noticed. The arrangement fee of £795 is a little higher than normal but the rate is outstanding and I would expect other lenders to soon follow suit.”
Ken Sives, senior partner at Sives Financial Services, was also surprised by SPML’s latest offer. “This sounds like an attractive offer. It’s very unusual that you can jump ship after three years and look around for a better offer.”
Sives went on to add: “The rate of 5.59 per cent for the five years is good given the kind of client that the product is aimed at.”
John Prust, sales and marketing director at SPML, said: “Feedback from brokers and packagers has shown an increasing number of applicants are seeking mortgages with no overhanging ERC’s. SPML’s five-year fixed rate offers an even better option with the ERC ceasing to apply well before the fixed term expires.”
