The range, which extends from Near Prime to Unlimited Adverse has a start rate of 5.5% (the overall cost for comparison is 6.6% APR) and has the feature of fixing the rate at 2 years from completion of the loan, as opposed to the market norm which has a stated end date.
In addition there is the choice of having No overhanging Early Repayment Charge (subject to one months notice) OR having an overhang after the end of the 2 year period, but a lower charge rate during the fixed rate period.
Products are available up to 85% Loan to Value, with no loadings for re-mortgages. No higher lending Charge applies to the range.
Funds are limited and need to be booked through members of RAMP, the packager association which provides the unique distribution platform for Beacon Homeloans.
Brian Pitt, director of sales and marketing at Beacon, said “There has been much debate about ERC’s recently and whether customers will actually buy fixed rate products with overhanging charges. Whilst the general feeling is that most do not want to be locked in after the fixed rate period, we thought we would test the market by giving people the option to select a reduced rate throughout the fixed rate period. I feel there are some customers who will choose the lower payment rate instead, but will be interested in seeing the results of this test. This, and the other features offered are in line with the Beacon company policy of Treating Customers Fairly.
In addition, there a very few deals that provide a true 2 year fix – normally there is a specified end date which can mean customers who suffer from delayed completion actually end up with a deal that is nowhere near 2 years. Ours is a genuine 2 year deal and I don’t know of any other of our close competitors that offer that facility”.
