View more on these topics

High Street Home Loans will maintain fixed rates

High Street Home Loans has pled-ged to maintain its fixed rate deals even if swap rates continue to rise.

A climate of base rate rises and in-creasing swap rates has led some len-ders to withdraw their fixed rate deals.

But the sub-prime lender says that until October it will not pull or increase any of its six fixed rate products, re-gardless of further base rate rises.

These include a three-year fixed product at 6.15% up to 70% LTV and a three-year fixed rate at 7.15% up to 90% LTV.

The lender says it can do this be-cause it has “a lot of margin to play with”.

Andrew Hood, national sales and marketing manager at High Street Home Loans, says: “We write a lot of business in the ‘dirty’ side of the market. We’ve been making healthy re-turns on our heavy to medium subprime business and this is why we’re able to maintain our fixed rates.

“Increases in swap rates will affect lenders in the near-prime market ra-ther than sub-prime players because their products are less profitable. We aren’t under pressure from rising swap rates because we don’t write prime business.”

He adds: “The way swap rates are looking we will be able to maintain our fixed rate deals, although we’ll reassess the situation in October.”

Jonathan Cornell, technical director at Hamptons Mortgages, says: “On-ly sub-prime lenders have the margins to get away with freezing rates. Prime lenders don’t have the margins. It’s brave to maintain the rates but they still need to be competitive.”

Recommended

FSA to hold free surgeries in July

The Financial Services Authority is offering free surgeries for financial advisers, mortgage and general insurance brokers. They will take place in Cheltenham on July 17, Gloucester on July 18 and Swindon on July 19.

KRS to take on 50 advisers

Key Retirement Solutions is expanding its adviser workforce. It plans to increase its sales by more than 20% during 2007 and is looking to recruit a minimum of 50 advisers over the next 12 months.

House price inflation up in April, says DCLG

Annual house price inflation rose in April to 11.3% from 10.9% in March, statistics from the Department for Communities and Local Government reveal. Annual house price inflation in London was 14% in April, up from 13.9 % in March.Between March and April there was a rise of 1.2% in the prices index of properties bought […]

Advantage appoints operations manager

Advantage has appointed Samantha Shamim as its new operations manager. Shamim’s particular focus will be on packager business operations. In this role, Shamim will report to new director of originations, Tracy Stokes.She joins Advantage with over 15 years’ experience in the mortgage industry and previously worked at LMS as operations and development manager, responsible for […]

Newsletter

News and expert analysis straight to your inbox

Sign up