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GEMHL expands range to help borrowers with limited options

GE Money Home Lending says it’s looking to help borrowers with limited options as it expands its product range, increases its LTVs and reduces its reversionary rates.

It is cutting reversionary rates to 5% from 5.5% and increasing LTVs to 75% from 70% as part of an overhaul of its product range, which leaves initial rates on some products at 3.49%.

It’s also added two new products to its range in response to a gradual recovery in the mortgage market. The products are aimed at first-time buyers and those customers who have suffered minor credit blips.

Rates for its GEM1 product start at 4.54% to borrowers who have experienced up to two defaults and its GEM2 product is available to customers with one County Court Judgement and one default on their record, with rates starting at 4.64%.

The specialist lender says that despite growing evidence of an upturn in the housing market it is increasingly difficult for borrowers who do not fit the high street norm to successfully apply for mortgages.

But it stresses that the product range is definitely not a return to sub-prime lending – its new range is aimed at prime clients who have experienced a blip in their finances.

Mark Snape, secured sales director at GEMHL, says: ““In line with our slow and steady progress these are the first changes we’ve made of any significance.

“We are adding two new products to our range in response to a gradual recovery in the mortgage market, to cater for the needs of first-time buyers and those customers who have suffered minor credit blips.”

GEMHL currently has 30 firms acting as introducers to it and these include credit brokers and packagers, the latter it says continue to represent its core distribution.

It’s also looking to expand to new channels and Snape says the addition of Connells is a means of “dippings our toe in the water”.


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  • Mark Harrison 23rd April 2010 at 9:11 am

    Regardless of your view of GE or their newly launched product range, the fact that they are still here and looking to launch new products should be welcomed by everyone in the mortgage market.
    However, they simply cannot support the non conforming market on their own and need other lenders to re-enter the market and only then will we see more competitive (and less restrictive products).
    Perhaps I am looking at this through rose tinted glasses but I can’t see a negative in this announcement.

  • Grey Haired Underwriter 19th April 2010 at 11:28 am

    I welcome any lender coming back into the market but I have always thought that GE loans should come with a health warning for the borrower. I have seen how ‘understanding’ they have been with borrowers who have a ‘blip’ on their payment record and the fees that they charge accordingly. They also used to have a habit of approaching the courts far faster than any other lender and have not been known to offer a particularly understanding approach – usually a repayment arrangement supported by a possession order.

    I would like to see all parts of the market serviced but it is no good being sensitive to someone’s plight when you want their admin fee and then cast them into the pit if they don’t behave impeccably

  • John Crescens 17th April 2010 at 6:58 pm

    Interesting developement given there are believed to be restructuring within the Originations/Processing teams in Watford resulting in significant redundancies from an already small team.Are GE serious long term players is a question worth posing.

  • Michael Clapper 16th April 2010 at 11:17 pm

    An important step and a useful boost for least some of those clients tripped up by the recession. Encouraging also to see Kensington, Platform and Aldemore looking tentatively around this space too. At 75% GE should be able to comfortably sleep at night, so it seems like wins all round. Well done Mark!

  • Dale Jannels, AToM 16th April 2010 at 5:57 pm

    It’s taken a vast amount of work by the GE team to get to where they are today. Give them some credit, rather than being negative. These products hit a gap in the market and at some good rates. Let’s be thankful they want to lend and hope that other lenders follow suit. There are a lot of clients out there who need this type of assistance and, right now, there’s not many lenders willing to assist. So this is a great step forward. Well done to Mark, Nikki and Team

  • Adrian Dunn 16th April 2010 at 4:07 pm

    I would like to congratulate Mark Snape and his team at GE Money for not only surviving the ‘credit crunch’ but for striving to get specialist lending back on the map in 2010. Obviously underwriting is going to be tight, due to the restrictions set by credit risk, but at least they are out there lending. Brokers need to understand that iGroup has positioned it’s products to assist those customers who are declined by high street lenders NOT for adverse business as we knew it (which was covered earlier by the astute Mr Duffy)

  • Robin Banks 16th April 2010 at 4:04 pm

    children, children children, calm down….. we will have to wait and see just what happens but, irrespective of the details, surely we must agree that new product entrants into the “blip” market will ultimately result in the releasing us from this huge stall which has occurred.

    Anyway, I’m off to the pub now!

  • Andy Brown 16th April 2010 at 4:02 pm

    Most of it has already been said….great & welcome news from GE. The score on the two new ‘blip’ products will also be relaxed on Tuesday to reflect the new criteria, so that should also be applauded.

    PS: re the Icelandic gas comment… i think Gordon Brown was mis-heard…i’m sure he said send ‘cash’?

  • peter 16th April 2010 at 3:31 pm

    Listen, the last thing I wanted to was upset people! It was the first thing I wanted to do!!! but I promise you,last post. Yes ch the thought of Ge coming back in any form of volume lending, led me to drink at lunch!!

  • John Higgins 16th April 2010 at 2:59 pm

    If you’re going to be rude about packagers you could at least have the decency to spell it correctly. Attention to detail Mr ‘chip on your shoulder about GE.

  • peter 16th April 2010 at 2:48 pm

    Mr eater, it’s between a pigs ear and a packager,which is what I made of that one!

  • peter 16th April 2010 at 2:44 pm

    Dear Mr penny, (I’m deliberately being extremely polite due to your reference of commando). I have googled the aforementioned only to find references to H.M. Forces. I must admit it has never crossed my mind to contact the army to place mortgages! However should this be a reference to a brokerage,packager or indeed a financial computor system then I must admit, I’ve never looked outside that particular box!!! Could be something to do with the name, it’s a bit naff,isn’t it?

  • CH 16th April 2010 at 2:39 pm

    2:35 : Are the pubs open ??

    1. Whilst we are correcting spelling etc – a KEYS search ???

    2. Packsger ???

    Has the excitement of a return of some flexible criteria in the non-conforming market turned you to drink ??

  • Peter Eater 16th April 2010 at 2:32 pm

    What’s a “packsger”?

  • peter 16th April 2010 at 2:20 pm

    Hey,(which is the way you spell it)the other is horse food! Mr eater either your short of something between the ears,a packsger or, unable to read a post correctly. Whichever, I didn’t mention anything about the products, I made a genuine statement which the vast majority of long established finance brokers know about Ge itself!!! If your willing to waste clients money then sobeit,I’m not. I’m also not willing to put my reputation on the line for a maybe!!!

  • Paul 16th April 2010 at 1:55 pm

    Tony – Brokers all want to work with GE and any other lender who will bring something to the table. The question is do GE want to work with brokers? Their credit scoring is prohibitive to say the least and does not reflect the advertised criteria. I am not advocating a return to the old ways but there is no point in advertising a complex prime/light adverse or whatever you want to class it as if it requires a prime credit score.

  • Tony Crossley 16th April 2010 at 1:48 pm

    I applaud the latest product offering from GE. There should be no expectation that qualification for these Products should be easy but more selective which is why things will not return to where they were. However clients need these products. Brokers who decide not to use the Lender will simply release more Funds for those of us who want to work with GE.

  • Peter Eater 16th April 2010 at 1:17 pm

    Underpaints hay; priceless! Where do they find these people. Good news with GEMHL.

  • peter 16th April 2010 at 12:09 pm

    Yes those gases originated in north america and came along with the easterly via iceland and hopefully they’ll blow back to iceland and remain inside an iceberg with a few wooley mamouth’s where they belong! Oh by the way, it’s ‘criss cross’ underpaints!!

  • David Penny 16th April 2010 at 11:57 am

    Peter .. the answer is to get your clients to go commando .. problem solved, you need to learn to think outside the box

  • Rob Jupp, Savills Lending Solutions 16th April 2010 at 11:48 am

    Blimey, that Icelandic Volcano is chucking out some wierd gases today; cris cross underpants hay?

  • Robin Lindley - ARI Network - 01142814441 16th April 2010 at 11:16 am

    We are perfectly happy with I-Groups new products and their credit-score system. We are also happy to package for them. Perhaps the negative comments are from people who are using the wrong packager, who doesn’t know what they are doing?

  • peter 16th April 2010 at 11:02 am

    Yes Mr Jupp, you are missing the point! we are now in an age where TCF is a priority, GE has always and more than likely always will leave you guessing right up until the last momement as to whether they will complete the deal in hand. By then the clients have, (which for them)parted with a considerable amount of money. Most lenders at present do not charge fees and rarely turn a deal down on a ‘speak with’ or, at a whim!! Take it from me I have, in the past, put millions a month thro GE,I know what I am talking about! The light adverse GE are talking about, at 75% LTV, you will find on the high street a lender who will take a veiw. However, it’s the lazy ifa’s and brokers (not generalising chap’s) who will use this short cut!! and packagers who will of course benefit from up front fee’s!!! I would welcome this product if GE and their distribution partners(of which I chose not to be one), would guarantee that even after a small fee,say £50, subject to a val and proof of income, they would do the deal.They’ve already completed full keys and a credit score, the only hiccup could be if the current lender wasn’t on keys! therefore a L12 maybe. However, we’ll still come back to the criss cross underpants scenario!!!

  • peter 16th April 2010 at 10:28 am

    YES, well done GE, and when you agree the dip the clients have spent hundreds of pounds on a val and extortionate packaging fees, you’ll turn it down because the clients wear criss cross underpants or,the bath was running when u did your speak with’s.Most clients will be accepted by the high st anyway,with that little adverse!!! Lets hope you don’t come back into the market with your credit commities,dithering and stupid excuses for not doing business that fits your criteria!!!Your only a blemain with better rates but at least they do lend!! even if I wouldn’t touch them for my clients!! PLEASE go back into hibernation where you belong!!

  • Robin Banks 16th April 2010 at 10:19 am

    Well said Dave Stephenson, Kevin Duffy, Rob Jupp et al, For the housing market to get some balance, we absolutely need lenders who are willing to look at “blips”. Call it what you like; Blip Lending is good for all, for the borrower, the seller and the intermediary. As I said on many occasions in posts here, as long as the high street Andy Hornby’s of this world keep away from it, then it will work find

  • David Penny 16th April 2010 at 10:17 am

    Any improvement in offerings from a lender should be welcomed with open arms. Mr J Woods cheap shot as Kevin pointed out is way of the mark, better to say nothing at all .. well done Mark & Nikki @ GE, from little acorns

  • Dave Stephenson, Manor Mortgages 16th April 2010 at 9:08 am

    Why do we always want to see the negative or bang on about what we are not happy with? Surely we should be grateful for all positive moves in our market. God knows there have been enough negative ones in the past two years.

  • kevin duffy , MD Mortgageforce 15th April 2010 at 4:51 pm

    memo to Mr J Woods ; your remark is about as accurate as your namesake’s driving was at augusta last weekend .
    The industry simply will not return to a 2006 sub-prime hedonism in our lifetime . Get behind this brave approach from a quality lender ; bravo Mr Snape and colleagues….

  • Shaun Vickery 15th April 2010 at 4:12 pm

    Naturally there remains frustration at the continued lack of product availability generally but let’s not take it out on the wrong people. GE are a lender who has remained genuinely committed to the intermediary market. A number or firms, including ours, who know them well enough also know that they have demonstrated loyalty to the sector far beyond that of many other lenders. To expect them to move mountains overnight is unrealistic and potentially catastrophic. I, for one, commend them on their continuing efforts. We have to be patient. These may be relatively small steps but they are most certainly in the right direction.

  • Rob Jupp, Savills Lending Solutions 15th April 2010 at 3:35 pm

    Maybe I’m missing the point here but these new products now mean that many cases that failed score, due to defaults, CCJ’s, clients not having a mortgage in the past 12 months, wrong LTV’s etc, etc will now fit criteria and therefore more will pass. Admittedly, some will continue to fail but isn’t that the case with all lenders and probably the major frustration that we all have in the mortgage community at the moment. This is a genuinely positive move. As Matt Cottle said earlier, “as one lender dips their toe in the water, others will follow.”

  • Paul Gibson 15th April 2010 at 3:32 pm

    Knowing GE and the excellent people who will have been responsible for this new range, these products will deliver the right choices, to the right individuals, at the right time in the current market. A welcome and rightly cautious step forward.

  • Paul Gibson 15th April 2010 at 3:32 pm

    Knowing GE and the excellent people who will have been responsible for this new range, these products will deliver the right choices, to the right individuals, at the right time in the current market. A welcome and rightly cautious step forward.

  • Sweetcheeks 15th April 2010 at 3:12 pm

    I absolutely agree with Anonymous, these developments are no use if they continue with the credit scoring system as it is

  • Matt Cottle 15th April 2010 at 3:05 pm

    This is good news for the market. A little at a time hurts nobody. As one lender dips their toe in the water, others will follow suit. Excellent news for brokers.

  • Paul 15th April 2010 at 2:54 pm

    Unless GE are prepared to lower their credit scoring requirements these products will be useless. No application to GE has been successful for us for months despite matching criteria. Come on GE if you are serious about lending prove it!

  • Woods J 15th April 2010 at 2:49 pm

    Of course it’s sub prime lending – just a fancy label – who are you trying to kid.
    First Kensington and now GE – here we go again!

  • Rob Jupp, Savills Lending Solutions 15th April 2010 at 2:47 pm

    These are fantastic products and a welcome addition in a horribly tough specialist market at present. Well done all at GEMHL.