Platform Home Loans has launched a new range of light-adverse products as the void between mainstream and sub-prime narrows even further.
Guy Batchelor, sales and marketing director, says: “Following requests from our intermediaries and further market research, we have identified a gap in the mortgage market. It is an area that can best be described as the lending zone between us and our sister company Verso.”
Platform's new products are available on a full-status basis at 2.75% above three-month Libor and self-certification basis at 3% above three-month Libor. Borrowers can also benefit from a 1.5% discount offer until 1 January 2003, or a selection of one-year fixed rates starting at just 6.25%.
The light-adverse products are designed for borrowers who have only a slightly less than perfect credit history, but would still not be able to obtain a mortgage from a traditional high-street lender.
This new light-adverse range can be used for house purchase or remortgage, and is available for loans up to 85% LTV and a maximum loan of £350,000.
Applicants can choose either a 1.5% discount until 1 January 2003 or fixed rates from 6.25% until 1 January 2003. Early redemption fees are 6% in years one and two, 5% in year three, and thereafter one month's notice in lieu or 1% of the amount redeemed.
Batchelor adds: “By introducing competitive rates for people who only just miss getting a loan from traditional high-street lenders, we believe it opens up a whole new market for our introducers and provides them with a more complete range of products.”