Pink opens parachute

Pink Home Loans has reduced the rates payable on the exclusive Parachute Mortgage funded by Amber Homeloans.

Borrowers can now take advantage of a minimum reduction of 0.25% regardless of the amount of adverse credit.

Tony Jones, managing director at Pink Home Loans, says: “Many sub-prime productscategorise borrowers into light, medium and heavy adverse profiles resulting in borrowers paying for credit problems they may not have.

“The Parachute is based on LIBOR plus loadings, which ensures that rates are individually tailored according to the client&#39s situation and needs. As a &#39price for risk&#39 product the borrower only pays for the amount of the adverse credit they have and loadings are even subtracted, for example, where self-certification is not required, and if the borrower has no CCJs or no arrears.”

Mike Perry, sales and marketing manager at Amber Homeloans, adds: “Parachute has enjoyed a very successful year and Amber are pleased to be able to continue to offer a mortgage product designed to appeal to borrowers with adverse credit histories which is tailored to their individual requirements”

Improvements on the exclusive product have been made through a reduction in some of the loadings used to calculate the initial pay rate with a minimum reduction of 0.25% and a maximum reduction of 0.75% in some cases.

Product summary

• Rate based on 3 month LIBOR plus relevant loadings

• Rate reduces by 0.5% per year on 12 months satisfactory payments being made until rate reaches 1% above LIBOR

• Lump sums of up to 10% of the balance can be paid off in each 12 month period without penalty

• Daily interest

• Up to 85% LTV to a maximum of £400,000

• Maximum borrowing of £500,000 up to 75% LTV

• Redemption penalty of 4% in year 1, 3% in year 2 and 2% in year 3

• Broker commission: 1% (min £500)

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