GEMHL expands range to help borrowers with limited options

15 April 2010 | By Robert Thickett

GE Money Home Lending says it’s looking to help borrowers with limited options as it expands its product range, increases its LTVs and reduces its reversionary rates.

It is cutting reversionary rates to 5% from 5.5% and increasing LTVs to 75% from 70% as part of an overhaul of its product range, which leaves initial rates on some products at 3.49%.

It’s also added two new products to its range in response to a gradual recovery in the mortgage market. The products are aimed at first-time buyers and those customers who have suffered minor credit blips.

Rates for its GEM1 product start at 4.54% to borrowers who have experienced up to two defaults and its GEM2 product is available to customers with one County Court Judgement and one default on their record, with rates starting at 4.64%.

The specialist lender says that despite growing evidence of an upturn in the housing market it is increasingly difficult for borrowers who do not fit the high street norm to successfully apply for mortgages.

But it stresses that the product range is definitely not a return to sub-prime lending - its new range is aimed at prime clients who have experienced a blip in their finances.

Mark Snape, secured sales director at GEMHL, says: ““In line with our slow and steady progress these are the first changes we’ve made of any significance.

“We are adding two new products to our range in response to a gradual recovery in the mortgage market, to cater for the needs of first-time buyers and those customers who have suffered minor credit blips.”

GEMHL currently has 30 firms acting as introducers to it and these include credit brokers and packagers, the latter it says continue to represent its core distribution.

It’s also looking to expand to new channels and Snape says the addition of Connells is a means of “dippings our toe in the water”.

Readers' comments (36)

Rob Jupp, Savills Lending Solutions | 15 Apr 2010 2:47 pm
These are fantastic products and a welcome addition in a horribly tough specialist market at present. Well done all at GEMHL.
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Woods J | 15 Apr 2010 2:49 pm
Of course it's sub prime lending - just a fancy label - who are you trying to kid.
First Kensington and now GE - here we go again!
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Anonymous | 15 Apr 2010 2:54 pm
Unless GE are prepared to lower their credit scoring requirements these products will be useless. No application to GE has been successful for us for months despite matching criteria. Come on GE if you are serious about lending prove it!
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Matt Cottle | 15 Apr 2010 3:05 pm
This is good news for the market. A little at a time hurts nobody. As one lender dips their toe in the water, others will follow suit. Excellent news for brokers.
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Sweetcheeks | 15 Apr 2010 3:12 pm
I absolutely agree with Anonymous, these developments are no use if they continue with the credit scoring system as it is
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Paul Gibson | 15 Apr 2010 3:32 pm
Knowing GE and the excellent people who will have been responsible for this new range, these products will deliver the right choices, to the right individuals, at the right time in the current market. A welcome and rightly cautious step forward.
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Rob Jupp, Savills Lending Solutions | 15 Apr 2010 3:35 pm
Maybe I'm missing the point here but these new products now mean that many cases that failed score, due to defaults, CCJ's, clients not having a mortgage in the past 12 months, wrong LTV's etc, etc will now fit criteria and therefore more will pass. Admittedly, some will continue to fail but isn't that the case with all lenders and probably the major frustration that we all have in the mortgage community at the moment. This is a genuinely positive move. As Matt Cottle said earlier, "as one lender dips their toe in the water, others will follow."
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Shaun Vickery | 15 Apr 2010 4:12 pm
Naturally there remains frustration at the continued lack of product availability generally but let's not take it out on the wrong people. GE are a lender who has remained genuinely committed to the intermediary market. A number or firms, including ours, who know them well enough also know that they have demonstrated loyalty to the sector far beyond that of many other lenders. To expect them to move mountains overnight is unrealistic and potentially catastrophic. I, for one, commend them on their continuing efforts. We have to be patient. These may be relatively small steps but they are most certainly in the right direction.
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kevin duffy , MD Mortgageforce | 15 Apr 2010 4:51 pm
memo to Mr J Woods ; your remark is about as accurate as your namesake's driving was at augusta last weekend .
The industry simply will not return to a 2006 sub-prime hedonism in our lifetime . Get behind this brave approach from a quality lender ; bravo Mr Snape and colleagues....
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Dave Stephenson, Manor Mortgages | 16 Apr 2010 9:08 am
Why do we always want to see the negative or bang on about what we are not happy with? Surely we should be grateful for all positive moves in our market. God knows there have been enough negative ones in the past two years.
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