The product connects a secured mortgage and an unsecured personal loan. Only prospective borrowers with an excellent credit history will qualify for the product, through an independent, regulated mortgage intermediary.
This specialist product serves a niche part of the market where there has been little competition. Nevertheless, this product will be tightly underwritten and have demanding credit criteria.
Main Features:
- This product will be available as either a fixed or tracker.
- Stringent credit criteria are in place. More than half of applicants are expected to be declined.
- This product connects a secured mortgage and unsecured personal loan with one monthly payment. The maximum combined loan-to-value is 125 per cent. This is made up of 95 per cent secured on the property and 30 per cent (or £30,000 whichever is lower) as an unsecured personal loan.
- BM expects a significant proportion of customers to be previous homeowners with - in all cases - a minimum deposit of 5 per cent.
- Customers are likely to be in their early forties or graduates / professionals with high potential for future income growth.
- Interest only will not be an option on this product and therefore all customers will be repaying on a capital and interest repayment method.
- The product will only be available through regulated, independent mortgage intermediaries.
