This new range called '8', consists of eight products covering the full non-conforming credit spectrum. These are: Near Prime, Minor Adverse, Light Adverse, Medium Adverse, Heavy Adverse, Fast Track, Buy to Let and Right to Buy. The new range includes highly competitive fixed and discounted options. Fixed rates have a 2 or 3 year option and rates are from 5.54% , with no early repayment charge (ERC) overhang beyond the fixed term. The new discounted rate is 2.25% until 1 December 2006. Other key features include increased income multiples (up to 4 +1, 3.5 x Joint up to 75% LTV); streamlined and consistent underwriting; and a higher lending charge only payable in excess of 85% LTV
The structure of the products has been simplified, now having standardised adverse credit criteria across the whole range of products. Right-to-buy and buy-to-let options have also been incorporated into product types rather than remaining as stand alone products. There is no rate loading for self certification of income up to 65% LTV, and the loading for remortgage business has been removed altogether. Buy to Let is now calculated on rental value of 110% of the monthly mortgage payment.
John Prust, SPML’s sales and marketing director said “SPML has responded to the market’s need for a more streamlined and simplified approach to our product structure, together with enhanced product features, without restricting our traditional range of choices. We believe that our “8” product range now provides mortgage brokers with some outstanding features to offer their customers, and we are confident that “8” will prove to be a major success with both brokers and borrowers.”
