Mortgages plc revamps entire product range

The new range was launched at a presentation and reception at the Merrill Lynch Financial Centre in London.

Intermediaries can now choose from the enhanced pricing structure which includes:

- Discounted for 1 year from completion - rates from 4.70%

- Discounted for 3 years from completion – stepped rates from 4.95%

- Fixed for 2 years from completion - rates from 6.20% (with no extended tie in)

- Fixed for 3 years from completion - rates from 6.50% (with no extended tie in)

The lender’s product offering has been broadened and now includes a Near Prime Plus range which is closer to prime than offered before by Mortgages plc. Mortgages plc’s buy-to-let and right-to-buy ranges have also been expanded and enhanced to be made available across the entire range, including the fixed rate options. Lending criteria has been standardised in a number of areas, making the range easy to understand.

Peter Beaumont, Sales & Marketing Director, said: “Mortgages plc has ambitions to significantly increase its share of the mortgage market during 2005. The backing of Merrill Lynch has given us access to cheaper funding, something we have taken full advantage of when developing this new product range. The new range was developed using the feedback from a number of our key intermediary partners and as a result we are now offering a wide range of excellent discounted and fixed rates and have significantly enhanced our underwriting criteria to make our range more competitive in every respect. Our borrowers will be the key beneficiaries of the changes we have made."

Enhancements to lending criteria include:

- Maximum loan sizes increased to £1.5 million (full status) and £750,000 (self certification)

- Buy to Let underwriting now based on 100% rental cover of the product revert rate

- First Time Buyers now acceptable up to 95% LTV, and up to 90% LTV for self certification

- Remortgages now allowed on Ex-Right to Buy properties within pre-emption period

- Defaults ignored on all products at all loan to values

- Fees may be added at 90% LTV for full status and self certification applicants

The new product range is available from 1st February 2005.