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.”