Its mortgage for purchase and remortgage permits up to six months of missed mortgage payments in the previous 12 months and six months outstanding at the time of application. The arrears can be owed to a sub-prime lender.
Individual voluntary arrangements, well conducted for at least six months, are allowed and discharged bankrupts can apply.
Sue Cox, business development manager at Bananas Inc, says: “There are a surprisingly large number of individuals in the UK who would benefit from this mortgage. They have bad debt and arrears backgrounds, but are willing to turn over a new leaf. Their needs are not met by most lenders. This product is specifically targeted at them.”
At a maximum 85% LTV, the rate is LIBOR plus 3.75%, discounted during the first year by 1%. The income multiple is 4.75 x one income, or 3.75 x joint.
The product, launched in conjunction with Preferred Mortgages, is available as self-certification, for employed and self-employed, with a loading of 0.25%. Maximum loan size is £500,000 for 85% LTVs and, for self-certification, it is £350,000.
Redemption is 6% during the first three years followed by one month thereafter. The procuration rate is 1% and the arrangement fee of £495 can be added to the loan. There are no compulsory insurances. MIG is charged on the product from 75%.