Packagers alliance RAMP has launched a non-conforming mortgage in conjunction with Preferred Mortgages.
The exclusive tracker is available at LIBOR plus 2.25% for LTVs up to 75%, with a discount of 1.5% for 12 months from the date of completion. The product allows up to three months mortgage arrears (none in the last six months), bankrupts who have been discharged a minimum of 12 months, and those with well-conducted IVAs.
John Rice, managing director of RAMP, says: “This is an exceptionally good adverse product that is now available exclusively from RAMP's packager members. It offers light adverse interest rates, with savings of up to 50 basis points per year, and light lending criteria.”
For an LTV up to 80% the rate is LIBOR plus 2.65%, up to 85%LTV LIBOR plus 3%, and up to 90%LTV LIBOR plus 3.65%. These LTV ranges attract a 12-month discount of 1%. Maximum loan size is £1m up to 75% LTV and, for higher LTVs, the ceiling is £500,000. Minimum valuation is £30,000. The product is available for purchase and remortgage.
There is a three-year tie-in and a redemption penalty of 6% in year one, 6% in year two, and 6% in year three for the discounted product. For non-discounted, the redemption penalty is 5% in year one, 4% in year two, and 3% in year three.