Secured loan lender Equifinance has launched a new secured lender subsidiary, Equifinance Plus, which lends to credit impaired borrowers.
Equifinance Plus aims to accommodate borrowers who have had mortgage arrears, defaults and county court judgements in the last 6 months of their financial history, with LTVs up to 100 per cent.
The annual rate of interest will be 39 per cent for borrowers with a clean credit history and 48 per cent for those with recent impairments on their record.
Loans are available for between 12 months and 60 months and the amounts range from between £1,500 and £5,000.
The lender has launched with packager Promise Solutions and its product will go live to four other packagers in the week commencing 25 March.
Promise Solutions managing director Steve Walker says “We are pleased to again be the first packager to bring a new lender to market. This was made possible primarily because we control the only loan sourcing system which supports the entire secured loan market and adding Equifinance Plus as a new lender was relatively simple.
“Brokers can now source accurate quotes from Equifinance Plus as well as every other lender in the sector and Promise can now provide Equifinance Plus written loan agreements and detailed information for brokers to discuss with their clients. We know that this is something brokers want.”
Although Equifinance Plus is a subsidiary of Equifinance, with both lenders sharing underwriting teams, both have entirely separate lines of funding.