Dubbed ‘PlusMortgage’, the product combines a mortgage with an unsecured personal loan, with borrowers able to take advantage of a maximum LTV of 125 per cent. Options on the LTV range from 95 per cent secured plus 30 per cent unsecured to 95 per cent secured plus five per cent unsecured as a personal loan. There are no higher lending or early repayment charges and unlimited overpayments can be made on the unsecured part of the loan. The same rate is applied to both the mortgage and loan for the term.
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Jeremy Claridge, head of specialist mortgages at A&L, said: “PlusMortgage offers a great option for many borrowers. First-time and next-time buyers with little or no deposit, people requiring funds for home improvements or Stamp Duty can get a competitive deal.”
Ray Boulger, senior technical manager at John Charcol, said: “Good aspects of the PlusMortgage criteria include no unreasonable restrictions on how the unsecured loan can be used, a valuation fee refund on most products and good indicative income multiples of around five-times single or joint for most borrowers.”
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Thomas Reeh, chief executive at blackandwhite.co.uk, said: “While the property market is stable, 100 per cent products will remain popular. The moment the market begins to retract these products will disappear.”
