Sub-prime five-year fix from SPML

Southern Pacific Mortgage Limited last week launched its first sub-prime five-year fix with a three-year early repayment charge.

After three years of the fixed term, the ERC allows borrowers to decide whether to remain on the fixed rate, switch free of charge to an SPML LIBOR plus margin product or to refinance without penalty, with only one month’s notice required.

Rates start at 5.59%, with the product available in SPML’s near prime range with a maximum of one CCJ for 500.

The fixed rate is offered on purchase and remortgage to a maximum of 85% LTV with no higher lending charge payable, and is also available to full status and self-cert applicants.

John Prust, SPML’s sales and marketing director, says: “Feedback from brokers and packagers shows an increasing number of applicants are seeking mortgages with no overhanging ERCs.

“SPML’s five-year fixed rate offers an even better option, with the ERC ceasing to apply well before the fixed term expires.”