London Scottish Mortgages, part of London Scottish Bank, is to launch a range of residential and commercial mortgages.
The lender says it will also offer a range of bridging loan products in a bid to fill several gaps in the non-conforming market. It says the products have been designed to fill gaps where other lenders have tightened their lending criteria in favour of near prime and prime products. Rates start at 4% above London Scottish Bank's base rate, currently 5.5%, and are available to a maximum of 75% LTV.
LSM's residential mortgage range is based on a capital and interest repayments while commercial products will be similar with the addition of an interest-only repayment facility.
Bridging loans are available secured on either residential or commercial properties starting from 1% a month interest only. Lending will be nationwide including Scotland and Northern Ireland.
Michael Rashman, managing director of LSM, says: “This is a good opportunity for London Scottish to support its traditional core business activities with non-conforming mortgages. I am convinced it will be well received by the intermediary market where speed of decision and communication with introducers are key.”
He adds that LSM will be appointing additional underwriting and completions personnel plus six business development managers throughout the UK.