Co-op agrees first sub-prime product range

The Mortgage Distributors Cooperative has agreed its first sub-prime product range, backed by Kensington Mortgages and Preferred Mortgages.

Both lenders are funding discounted, medium adverse products that cover applicants with CCJs totalling between £2,500 to £6,000. The products are available for self-cert and status borrowers.

The Kensington-backed range includes four products. For lower adverse applicants, there are self-cert and status variants on a three-year discount of 1.25% in the first year, 1% in the second and 0.5% in year three. The medium adverse products offer a 1% discount for year one, then 0.5% and 0.25%.

Keith Street, general manager of sales at KMC, says: “These products were built in partnership with TMDC. But they are not exclusive to it and can be accessed by our other distributors.”

Simon Biddle, sales and marketing director at Preferred, adds: “We think TMDC has fantastic potential as the annual distribution of the packagers in the group runs into many billions of pounds.”