Mortgages PLC has launched a credit repair product specifically designed to help borrowers wanting to satisfy an existing Individual Voluntary Arrangements.
The number of IVAs is on the increase in the UK, with 12,228 IVAs being registered in the third quarter of 2006. This is an increase of 117.9% on the same period last year, according to the Insolvency Service.
The product will be available on a semi-exclusive basis via a limited number of distributors. There is a choice of a one-year fixed or tracker with rates depending on LTV and status.
After 12 months, the borrower can then remortgage away to another lender or back to Mortgages PLC, if that represents best advice, with the introducing intermediaries and packagers earning full procuration fees.
Pete Thomson, sales director at Mortgages PLC, says: “There has been a rapid increase in the number of IVAs and this product gives borrowers an opportunity to clean up their credit record and transfer onto a mainstream mortgage in as little as one year.
“There are very few mortgage products which cater for borrowers with IVAs and, with most general credit repair products, it’s normal for mortgages to carry early repayment periods of 2-3 years.”