The branded lender and packager’s new product for purchase and remortgage, permits any three payments to have been missed out of the last six due, where the current lender is deemed sub–prime. Vesta’s exclusive product will allow up to 85% LTV to be achieved, giving the opportunity for a fresh start to a greater proportion of borrowers needing a second helping hand from unforeseen circumstances.
Mark Leaper, Managing Director of Vesta Packaging, said: “People that have found themselves in a position of financial difficulty for a second time often feel excluded from the mortgage market, but the good news is that they now have somewhere to turn. The New Start product gives them the option of taking out a new mortgage and turning over a new leaf. The product is exclusive to Vesta because, although many lenders can help in this situation, they will not lend above 75% LTV.”
In addition to the flexibility with mortgage arrears, the product will also allow for an unlimited amount of County Court Judgments and an Individual Voluntary Arrangement (IVA) that has been well conducted for at least six months. Discharged bankrupts can also apply. (All adverse credit that is more than two years’ old will be ignored).
At a maximum 75%LTV, the rate is Libor plus 4.25% (discounted during the first year by 1.5%); at 80%LTV, it is Libor plus 4.75% (discounted during the first year by 1%); and, at 85%LTV, it is Libor plus 5% (first-year discount of 1%). The income multiples that apply are 4.75 x 1st income plus 1 x 2nd, or 3.75 x joint.
The new product is available on either a full status or self-certification basis for both employed and self-employed and it can also be used for buy-to-let’s and right-to-buy purchases or remortgages, providing that the applicant is at least 12 months into the council’s pre-emption charge. The maximum loan size is £750,000 for 75% and £500,000 at LTVs of 80% and 85%.
