As newly merged companies (subject to final FSA approval),
Guaranteed/Genesis will offer these products to their network of ARs via their joint packaging facility based in Maidstone.
The products themselves both offer a discount from SVR until 30th November 2007 and can be utilised for purchase or remortgage up to a maximum 80% LTV. The first of these boasts a sizeable 1.75% discount until 30 November 2007 – giving an initial pay rate of just 4.99% – and has Early Repayment Charges (ERCs) of 4% until 30 November 2008. The second of the two products benefits from having no extended tie-in, and this time is discounted by 0.85% until 30 November 2007, which provides an initial pay rate of 5.89%. The ERCs are 4% – as with the first product – but this time, only applicable until the end of the discount period.
Although these products are ‘Near Prime’, they offer adverse credit limits normally associated with heavier adverse schemes. Both rates will allow for £1,000 of unsatisfied CCJs (none in last 3 months), all defaults to be ignored (none in last 6 months) and 1 missed mortgage payment with the last 12 months (none in last 6 months). Furthermore, previous bankruptcies will be acceptable if cleared 3 years, IVAs will be allowed if cleared and past repossessions can be accepted if they were over 3 years ago.
John Smith, managing director of Guaranteed Home Loans commented, “ We are delighted to be given the opportunity to promote these great new products from Lambeth, and we are certain they will be well received amongst our ARs. The launch of these is an important step for both Genesis and Guaranteed as it signifies the start of a new phase in the packaging facility we offer our network. With the strength the merger has provided our two companies, we are now in a position to begin implementing a new business plan which we believe will not only offer our ARs an increased choice of lenders and ‘exclusive’ products, but also a superior level of broker service and customer care.”
