Mortgage Plus revamped

BM Solutions has upped its game in the 125% LTV sector with criteria changes and a proc fee promotion.

Since last November when it lau-nched Mortgage Plus, a 125% LTV product that combines a standard mortgage with an unsecured loan, BM Solutions has come under fire because the product required a 5% deposit and restrict-ed the mortgage term to 25 years.

It has responded to the criticisms by allowing Mortgage Plus deposits to be taken from the unsecured part of the loan and has increased the product’s permitted term to 35 years.

It is also offering loans on an interest-only basis, in line with its competitors in the sector.

To mark the relaunch of Mortgage Plus, BM Solutions has increased the product’s proc fee to 0.6%.

It is also providing an extra promotional proc fee of £300 for every case completed.

Mortgage Plus offers a two-year tracker at 5.79% and a two-year fixed rate at 6.2%, both of which have £1,949 arrangement fees.

A spokeswomen for BM Solutions says: “This relaunch marks the second phase of our attack on this sector, which until recently was dominated by Northern Rock’s Together mortgage.

“We have listened to broker feedback and have acted accordingly.”

She refutes any claim that its original offering misjudged the market by demanding a 5% deposit from borrowers and adds that a phased approach for the product had always been planned to test the waters.

Jonathan Cornell, technical director at Hamptons Mortgages, says: “BM Solutions has fixed all the things that were wrong with Mortgage Plus. This is good stuff, especially as the lender’s service levels are among the best.”

Ray Boulger, senior technical manager at John Charcol, says: “Competition in the 125% LTV market will hot up over the next few months, with some new lenders possibly entering with their own offerings.”

Northern Rock is expected to re-price its 125% range this week.