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”.