Light adverse deals from TMW

The Mortgage Works is gearing up to launch a range of light adverse products in the new year.

The products have been designed to complement parent Portman Group’s existing range of prime, buy-to-let, self-cert and non-conforming products on the TMW side.

Although no further details are currently available, TMW says the full status loans have been designed to be competitive on pricing.

The move into the sub-prime market has been motivated by recent changes to legislation on bankruptcy, with a greater number of borrowers predicted to have impaired credit.

Matthew Wiles, group development director at Portman, says: “As predicted, changes to the Enterprise Act in April this year appear to have directly influenced the number of people declaring themselves bankrupt.

“The number of personal bankruptcies rose by 29% on the same period in 2003, with nearly two-thirds being voluntary; the highest proportion ever.

“The TMW light adverse product has been designed to rehabilitate borrowers. Once a customers credit status has recovered we will move them onto our prime products without the usual costs of remortgaging.

“We have a low cost of funding and we intend to leverage this advantage to be price competitive for the business we want.”
The move has been welcomed by brokers. Roy New, a south London-based sole broker, says: “There is a market for these products. With so many people becoming self-employed there will be a lot of bankrupts.

“I mainly deal with the sub-prime market and you keep changing them until they’re with a mainstream lender. The more lenders moving into this market, the better – many borrowers need all the help they can get.”