Cheltenham & Gloucester will storm the specialist lending market tomorrow with its first sub-prime mortgage range.
It will be launched through the lenders new intermediary-focused arm, C&G for Intermediaries.
The entry, which will be unveiled just a week before the launch of Coventrys Godiva Mortgages (Mortgage Strategy. March 5), comes as C&G defends its service standards.
As Mortgage Strategy revealed last week, C&Gs service standards have been slammed for their lack of speed and efficiently, which according to a separate broker source, is a result of the lender making a two and a five-year, fixed rate deal available for too long.
C&Gs new Access Range is targeted at borrowers with near-prime credit histories and includes a two-year, 5.79% fixed rate deal until April 30 2009 and a two-year, 5.54% tracker, priced at 0.29% above base rate until January 31 2009. Both are available at 75% LTV.
Up to 80% LTV is available for two, three and five-year deals, fixed at 5.99%, 5.99% and 6.09% respectively. A five-year deal fixed at 6.29% is also available for borrowers requiring more than C&Gs normal affordability limits while a two-year tracker is priced at 5.84% – 0.59% above base rate until January 31 2009.
Assist Mortgages is C&Gs light adverse range for clients with up to two County Court judgements of up to 2,000, which may be unsatisfied or those who may have up to two months arrears within the last six months.
A two-year, 5.89% fixed rate deal and a two-year, 5.64% tracker is available up to 75% LTV. Two, three and five-year fixed rate deals are also available at 6.09%, 6.09% and 6.19% respectively, all at 80% LTV.
C&G will also offer a 100% LTV, non-standard option for borrowers lacking at least a 5% deposit. It includes a two-year, 5.95% fixed rate deal until April 30 2009 and a two-year, 5.65% tracker, priced at 0.40% above base rate until January 31 2009.
Mark Blackwell, C&Gs new head of corporate and specialist intermediary sales, tells Mortgage Strategy Online: Were not trying to reinvent our proposition, we are refreshing it and restarting it.
Were currently in the mainstream market, we are some years experience in the buy-to-let market and the UKs fourth largest buy-to-let lender and non-standard lending encapsulates this proposition.
Weve trialled our near-prime range over the last few months and proven to ourselves its a market that we can work in and now were refreshing them.
He adds that he will now focus on the second strand of C&G for Intermediaries remit, which is to develop the lenders key intermediary, corporate partners, which will in time include exclusive deals.