Introduction of New self-certification range – Trustguard.
Kensington and Trustguard together will be giving rates starting at Base rate plus 1.69% for a self certified two year tracker. These will be rolled out to the self employed, the employed and prime first time buyers. They will be available for buying a new property or remortgaging
Sian Brown, Trustguard National Sales Manager, said: “There is a gigantic hole in the market where 90% LTV self-cert products used to be. Lenders have pulled out of this area in a big way leaving thousands of brokers’ clients high and dry. You can virtually count the competitive products on the fingers of one hand. This range is going to help a lot of intermediaries place their applications.”
Borrowers will have the option of a two year deal which will be fixed at 6.99% or even a 3 year deal at 6.89%. The completion fee of 1,999 can also be added to the loan ABOVE the maximum Loan to Value. There won’t be a Higher Lending Charge and you can borrow up to 500,000.
The reversion rate will be BBR+2% and borrowers will be able to overpay up to 10% in any one year. Prospective applicants should have no CCJs in the last three years, no defaults in the previous three years, no IVas, never have been declared a bankrupt and have no arrears for the last twelve months.
Philip Collins, chairman of the Office of Fair Trading (OFT) will be the keynote speaker at the Association of Finance Brokers’ (AFB) annual dinner on 1st July 2008. It is to be held at the Drapers Hall, London. AFB’s chairman, The Rt Hon John Gummer, MP, will also be speaking.
Robert Sinclair, director of AFB said: “We are delighted to announce that Philip Collins will provide our after dinner speech. As an acknowledged expert in the area of European and Competition Law, Philip is uniquely placed to provide insights into changes in lending markets, and the forthcoming Competition Commission report on payment protection. It will be a great opportunity to hear, first hand, from the man who governs the OFT.”
The Intermediary Mortgage Lenders Association (IMLA) has questioned the effectiveness of the FSA regulatory regime following publication of the second stage of the FSA’s Mortgage Effectiveness Review.
Peter Williams, executive director of IMLA, said: “IMLA welcomes the publication of the second stage of the Mortgage Effectiveness Review – although in reality the key findings are unsurprising and in some respects take the industry little further. Almost all sub-prime mortgage sales are through intermediaries, who are clearly best placed to take account of the very specific circumstances that such borrowers face. Not surprisingly, customers rely on their broker’s professional advice and expertise.”
“On the whole these findings are complementary to the Financial Services Authority. As far as the MCOB (Mortgage Conduct of Business rules) I think the results of this study question the regime already in place and suggest the over-engineering could be simplified. I’m hoping these findings will be properly considered in the MCOB review.”