View more on these topics

Mortgages PLC launches credit repair mortgage

Mortgages PLC, the UK lender and subsidiary of Merrill Lynch, is launching a mortgage which allows borrowers to repair their credit record after just 12 months.

The product, which is the first of its kind in the UK sub-prime market, allows borrowers to then remortgage without incurring onerous redemption charges.

The new mortgage, which is available from November 20, is a major development for the adverse sector where it’s normal for mortgages to carry early repayment periods of two to three years.

It offers a choice of a one-year fixed or tracker with rates depending on LTV and status.

After 12 months, the borrower can then remortgage onto any other Mortgages plc product with introducing intermediaries and packagers earning full procuration fees. Alternatively, borrowers can remortgage to another lender if they wish to do so.

The product is available up to 85% LTV on heavy and 80% LTV unlimited products, any amount of CCJ’s or arrears, arrears with an adverse credit lender are allowed up to 75% LTV and all defaults ignored and full status or self-cert for either purchase or remortgage.

Also there is an optional higher lending charge, free valuation available an early repayment charge of 8% in first 12 months, 30 days interest thereafter and procuration fees payable within 24 hours of completion.

Pete Thomson, sales director at Mortgages plc, says: “This is a genuinely innovative product which gives borrowers, for the first time, a real opportunity to clean up their credit record and transfer onto a mainstream mortgage in as little as one year.

“Although the rates are slightly higher than normal for a short-term fixed or tracker, the product is perfect for borrowers who have experienced credit problems and want to get their finances back on track.

“After 12 months, they can remortgage onto any of Mortgages plc’s current products or, if they wish, remortgage to another lender.

“This is a real breakthrough in credit repair and I have no doubt it will be extremely popular with both intermediaries and borrowers.”


FSA warns brokers to give better advice

The Financial Services Authority has warned that after two years of regulation there are still worrying cracks in the information brokers are giving to clients.Speaking today at the Mortgage Business Expo, Clive Briault, managing director of retail markets at the FSA, says the pressure is starting to increase on the processes for giving mortgage advice, […]

Woolwich improves buy-to-let proposition

Woolwich has announced that it is improving its buy-to-let proposition by simplifying documentation requirements. For loans up to 500,000 and with a maximum LTV of 75%, proof of income is no longer required. Also, for loans greater than 75% LTV or where the maximum aggregate buy-to-let borrowing is between 500,001 and 1m, only the latest […]

FSA urged get tough on ads

Treasury Select Committee chairman John McFall has called on the Financial Services Authority to take a more robust stance on misleading financial advertising.McFall has written to Sir Callum McCarthy, chairman of the FSA, outlining his concerns that the regulator gives too little detail about which banks and insurers are being investigated for breaking the rules.He […]

Economic guru dies

Milton Freidman, the inspiration for many of Margaret Thatcher’s economic policies has died aged 94.The economist who coined the phrase “there’s no such thing as a free lunch” was the man who proved that inflation could be controlled by targeting the money supply. This theory became monetarism.Dr Freidman won the Nobel prize from Economics in […]

‘How to…audit your auto-enrolment scheme compliance’

Avoid pension penalties with our auto-enrolment checklist

According to the Pensions Regulator’s annual commentary and analysis report released this month, 785 potential non-compliance cases were referred for investigation, with 23 auto-enrolment compliance notices issued. And they predict that the use of their statutory powers is only going to increase.


News and expert analysis straight to your inbox

Sign up