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Igroup broadens scope of products by cutting some reversionary rates

Igroup has boosted the adverse sector by cutting some of its reversionary rates by up to 2.49%.

The GE Money Home Lending-owned lender’s reversionary rate is similar to other lenders’ SVR, but instead of being standardised across its range, it differs according to the type of product and rate.

Igroup’s reversionary rate was the second highest in the market at 8.49%, but it has now been slashed to 6% on some of its products, bringing it more in line with the industry average of 4.79%.

Cheshire Mortgage Corporation has the highest SVR at 12.5%.

Igroup has also cut some of its rates by up to 0.90%. Its range now includes a 4.29% one-year discount deal, a 4.99% two-year fixed rate and a 5.49% three-year fixed rate deal.

Dale Jannells, sales and mar-keting director at All Types of Mortgages, says igroup uses its reversionary rates to calculate affordability and by reducing them it will make its products available to more borrowers.

He says: “It shows the lender’s appetite to lend and its abilit to adjust its rate to meet demand. Hopefully more lenders will follow.”

But a spokesman for GEMHL says: “We have made products more attractive, but we have no plans to increase our volume of mortgage lending.

“We still anticipate 2010 to be a hard year, particularly for adverse borrowers. We continue to con-centrate on managing our book and help existing customers repay their mortgages.”

Meanwhile, it was revealed last week that a London-based solicitor firm is investigating the legality of a clause in Skipton Building Society’s mortgage contract that allowed the lender to hike its SVR to 4.95% in January.

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