GE enters prime market

The prime product will initially be available through selected key partners: Abacus Permanent, Optoma Broker Solutions and Pink Home Loans.

The prime product will complement the existing First National portfolio, which will now offer a range from prime through to adverse. Key features of the prime mortgage include:

• Onsite underwriters
• Fixed rates from 4.89 per cent
• Loan-to-values (LTVs) of up to 95 per cent
• Affordability based decisions
• Loans of up to £500,000
• No extended overhang

Duncan Berry, director first mortgage sales, GE Money Home Lending, said: “As part of one of the largest companies in the world, we have the size and experience to branch confidently into new markets. This move reflects GE’s appetite to expand the First National range beyond its traditional strengths with the benefits of its affordability model. The prime market is highly competitive and we are confident that there is a strong demand and market for this product."

Clare Osunjimi, operations manager, Abacus Permanent, commented: “We are pleased to have been asked to support First National as they enter this market. They have obviously researched the current prime offerings for some time and as a result have chosen to launch not only with a highly competitive rate but also a strong affordability model. There is no doubt that these products will prove popular and will complement the current Abacus product range.”

Harpal Singh, operations director, Optoma Broker Solutions, said: “We are delighted to be involved in this pilot. There is a huge need for affordability based prime mortgages. Particularly as many intermediaries are frustrated by conventional income multiples. The competitive rates show that GE can be a big player in the prime market.”

Dev Malle, sales director at Pink Home Loans, added: “First National has made a courageous step by distributing prime products through selected packaging partners. The products available are very competitive with fixed rates starting at 4.89 per cent.”