Pink Home Loans has launched a new sub-prime product in association with BM Solutions that offers 95% loan to value for borrowing of up to £150,000.
The product tracks the Bank base rate at 2.69% for two years, offering an initial pay rate of 6.94%.
A maximum of £2,000 CCJs are acceptable as long as none have been registered in the last 12 months, and a maximum of two months arrears can be considered, provided they have not increased over the past 12 months.
In addition, there is no early repayment charge overhang, so the client has the option to remortgage to a prime product, as by that time they will havethree years' clear credit history.
Intermediaries can submit applications, including those at 95% loan to value, online to BM Solutions and receive 1% broker commission.
David Copland, sales and marketing director at Pink Home Loans, says: “This product caters for the light adverse section of the sub-prime market and as the rate tracks Bank base rate it offers greater transparency for the borrower. It would be an ideal product for a first time buyer, for example, who has had some credit problems in the past and wants to get backon track, but is unable to provide a bigger deposit.”