They are effective from Monday 21 November. SPPL’s secured loans products are now grouped into two separate product ranges with differentiated interest rate loadings above LIBOR. There is now one range for CCA regulated loans (up to £25,000) and a second range for unregulated loans which are available from £25,001 to a new maximum loan size of £150,000 (at 75% LTV), with improved maximum loans sizes on other schemes. A new unlimited adverse scheme has also been introduced for loans up to 75% LTV.
Also new to the market are discount options of 1% up to 80% LTV and 0.5% up to 90% LTV. Discounts are until 1 March 2007 and available only for loans of £25,001 and above.
An interest-only repayment option has been introduced, available with both regulated and unregulated loans, and self certification of income (subject to a 0.5% loading) is available across the majority of schemes and now, for the first time, up to 90% LTV. In addition, for all self cert borrowers whose total borrowing does not exceed £250,000, there will be no requirement for any further documentation from an accountant. Including the 1% discount, rates start from 3.5% above LIBOR, with self cert rates starting from 4% above LIBOR.
Other new, improved features include the availability of SPPL secured loans to right-to-buy borrowers within the discount pre-emption period, a new three year single premium payment protection policy, the launch of an in-house legal service and new terms for discharged bankrupts.
Marie Kennedy, SPPL’s national head of sales, commented: “Secured second charge loans are a booming sector of the industry and keen competition in the market place is producing some very attractive products for borrowers. We have designed our new product range to be at the most competitive end of the market, at the same time catering for a wide range of credit profiles and filling niches that are not generally available from other lenders. We are confident that the new range will prove to be very popular with both brokers and borrowers. Full support is on hand for intermediaries, included nationwide BDM coverage and a new SPPL website facility that offers access to online credit agreements, sales literature and documentation.”
