GEMHL targets clients with credit blemishes

MARK SNAPE: MARKET IS RECOVERING
MARK SNAPE: MARKET IS RECOVERING

GE Money Home Lending has overhauled its product range to cater for borrowers with minor credit blips but has ditched its self-employed offering.

The lender says it wanted to test the products on full status applicants but has not ruled out catering for the self-employed in future.

Rates for its GEM1 product start at 4.54% for borrowers who have experienced up to two defaults. The GEM2 product is available to customers with one County Court Judgement and one default on their record, with rates starting at 4.64%.

The lender has also cut its reversionary rates to 5% from 5.5% and increased LTVs to 75% from 70%.

Mark Snape, secured sales director at GEMHL, says the range does not signal a return to sub-prime lending and is aimed at prime clients.

He says: “We are adding two products to our range in res-ponse to a gradual recovery in the mortgage market.

“This is to cater for the needs of first-time buyers and customers who have suffered minor credit blips.”

Dave Stephenson, managing director of Manor Mortgages, says: “This range is a breath of fresh air and should give us all hope.

“GEMHL will not be looking to attract huge volumes of business on these products but they represent a considerable stride back towards normality.”