Packager Knight Funding is offering a three-year non-conforming discount mortgage from Platform, with no redemption fees after the discount period.
The discount is 2% in year one, 1.5% in year two and 0.25% in year three. Early repayment fees are restricted to the three-year discount period and are 6%;6%;5% of the amount paid in full or part payment. The discount deal, negotiated by the PMPA, can be applied to any product in the Platform non-conforming range.
Frances Scanlan, chief executive of Knight Funding, says: “The product gives intermediaries an excellent choice for adding value to the consumer. They can choose to take advantage of the existing no application fee offer from Knight Funding on Platform's non-conforming range which is now extended to June 30, or this discount with no redemption overhang.
“This is also an excellent opportunity for borrowers with past credit problems to establish a good payment history, while enjoying the benefits of a discounted rate without any early redemption fees charged beyond the discounted period. After three years, borrowers with a good payment record should find little difficulty in obtaining a mortgage from a high street lender, so this could be a relatively painless option for moving back into mainstream borrowing.”