BM Solutions has entered into a price war with Northern Rock on its 125% LTV Mortgage Plus range, slashing rates by as much as 50 basis points.
BM Solutions introduced its Mortgage Plus range in November last year. Up to that point the high LTV market had been dominated by a couple of players, the biggest of which was Northern Rock’s Together range.
High LTV products combine a secured mortgage and unsecured loan, provided an alternative solution for consumers in this sector, such as first-time buyers or those starting afresh following separation.
On BM Solutions’ range, certain products now include additional features such as cashback and free valuations, which provide an attractive option for those looking for lower starting costs.
Rates in this range now include:
5.65% two year fixed product.
5.99% two year tracker, no early repayment charges.
6.25% two year tracker with 1,000 cashback and free valuation.
The HBOS subsidiary says the rates mean on a 150,000 mortgage and loan on a repayment basis, consumers can make a 70 saving on their monthly repayments compared to other fixed products currently in the market.
An industry source says: “With these products BM Solutions is showing its really serious about this market.
“This is going to shake NR’s hold on this market to the very core. Brokers will now have to consider BM Solutions every time a client requires secured/unsecured product.”
Chris Pearson, head of sales and marketing at BM Solutions, says: “Following the refresh, BM Solutions now has the lowest fixed rates in this market by a mile. The other players don’t come close to competing.
“It shows that we are continuing to champion brokers with exceptional products for their clients, whilst providing outstanding five star service in the sector.”