The mortgage range will feature categories from almost prime to light adverse.
The almost prime range includes two-and three-year fixed rates up to 75 per cent loan-to-value (LTV) from 6.08 per cent with a 1.5 per cent completion fee, or 6.48 per cent with a completion fee of £795.
find out more about this weeks industry news
It allows £250 of CCJs and £250 of defaults in the last two years, with none in the last six months. There are no higher lending charges and early repayment charges of 6 per cent of the amount repaid in year one and 5 per cent in year two.
The light adverse category allows £4,000 of CCJs in the last two years, with none in the last three months and defaults are ignored. Two and three-year fixed rates start at 6.63 per cent up to 75 per cent LTV with a 1.5 per cent completion fee.
register for the next forum
Commenting on the new ranges, Colin Snowdon, chief executive of Wave, said: “We’ve never been a big player in the non-conforming sector and we want to do more. While people see us as a prime niche lender, we think this sits consistently with our proposition, as we do not intend to do medium or heavy adverse business.”
Ray Boulger, senior technical manager John Charcol, said although it was difficult to compare non-conforming lenders with regards to their competitiveness, due to their differing criteria, Wave’s products looked sensible.
He explained: “It is hard to pick out one particular lender to say it is competitive in non-conforming because they all have different criteria. However, £4,000 of CCJs is more than most lenders allow on light adverse products and the 1.5 per cent completion fee makes sense, because those with adverse credit are clearly struggling with their finances and the fee can be added to the loan, so the client has lower payments and is less likely to default. This especially makes sense in a rising interest rate market.”
catch up on the industry buzz
