View more on these topics

SPML lauches sub-prime five-year fix with three year ERC

Southern Pacific Mortgage Limited has launched the first ever sub-prime five year fixed rate with a three year early repayment charge.

This allows the applicant the ability, after three years of the fixed term, to remain on the fixed rate, to switch free of charge to a SPML LIBOR + margin product, or to refinance without penalty (only one months notice is required).

The five year fixed rate with three year ERCs is from 5.59% and is being offered on SPMLs near prime range that allows a maximum of one CCJ for 500 (unsatisfied).

The fixed rate is offered on purchase and remortgage to a maximum of 85% LTV, with no higher lending charge payable.

It is available to full status and self certification applicants.

An arrangement fee of 795 is payable and can be added to the loan on completion, and the early repayment charge is 6% (December 1 2006), 5% (December 1 2007), and 4% (December 1 2008), with one months notice thereafter.

John Prust, SPMLs sales and marketing director, says:
“The new product will give applicants peace of mind about the future movement of rates.

“Should rates rise overall, then they have the security of the lower rate for the full five year term.

“If rates are lower after three years, then borrowers are free to seek other options without any early repayment charges being applied.

“Feedback from brokers and packagers has shown that an increasing number of applicants are seeking mortgages with no overhanging ERCs.

“SPMLs new five year fixed rate offers an even better option, with the ERC ceasing to apply well before the fixed term expires.


Self-cert rates could go even lower

The mortgage industry’s long run of success is down in good part to consumer confidence plus highly competitive product offerings. To paraphrase Harold Macmillan, the mortgage customer has never had it so good. The range and depth of product lines on offer are truly staggering. Today, more mortgages are being approved via innovative and competitive […]

BM pulls the plug on 48 of its 67 branches

Birmingham Midshires has revealed that it’s set to pull the plug on 48 of its 67 branches, through a phased programme concluding in March 2006.Following completion of the closure programme, existing BM based branch customers will have the option of banking at their nearest Halifax branch, the majority of which are within 300 metres of […]

Residential rents pick up at fastest rate in four years

RESIDENTIAL rents have picked up at their fastest pace in four years, latest research from the Royal Institution of Chartered Surveyors reveals. The RICS’ lettings survey for the quarter to July shows tenant demand for rented property continuing to rise, having held firm over the previous quarter. Demand is strongest for flats as prospective first-time […]

Lenders should see the RMAR from a broker’s point of view

From Chris French We have just completed our RMAR. While the industry has gone in for navel-gazing and self flagellation over KFIs, little has been written about the completion by brokers and networks of the RMAR and how this process could be assisted by the product providers. A good start would be for lenders to […]

Auto enrolment – so far so good?

Jamie Clark – Business Development Manager The recent report from the Pensions Policy Institute demonstrates the sheer scale of auto-enrolment so far and what we can expect in the future. We’ve pulled out the key information to save you reading the full report. Auto enrolment in numbers Sources: Pensions Policy Institute, The Future Book: Unravelling […]


News and expert analysis straight to your inbox

Sign up