Heroes & Villains
Hero of the week is Precise Mortgages, which has launched a range for home movers. It is great to see it expanding its product range. An affordability stress test to 2% above the reversionary rate applies, which helps to ensure borrowers have strong affordability even if rates rise. All products have a three-year cap at 3% above pay rate.
Villains of the week are the lenders using charging orders to turn unsecured debts into secured debts. A charging order is a court order that places a charge on a debtor’s property, turning unpaid, unsecured judgement debts into secured debts. Secured debt is cheaper for borrowers. Lenders can’t have it both ways.