Non-conforming mortgage range promises to get borrowers back on track

Freedom’s On-Track mortgage range, which is the first of its type to be launched in the UK mortgage market, rewards borrowers with a 0.10% rate cut whenever they make 6 consecutive monthly mortgage payments on time. This continues until borrowers reach Freedom’s prime mortgage rate – currently Bank Base Rate + 0.98% for full status borrowers and Bank Base Rate + 1.28% for self-certification.

The On-Track range covers a broad spectrum from light to heavy adverse – a total of 10 products catering for everything from missed mortgage payments to CCJ’s, IVA’s and bankruptcy. All products come with an introductory 0.75% discount for 3 months.

Colin Snowdon, Managing Director at Freedom Lending, said: “On-Track is a real breakthrough in mortgage lending because, for the first time, non-conforming products have been designed with the sole objective of rehabilitating borrowers with an adverse credit record as quickly as possible.

“Traditional sub-prime lenders give borrowers little incentive to keep up to date with payments and do not generally reward those that do. It can take 3 years before most lenders are willing to disregard a history of mortgage arrears and minor CCJs and up to 6 years before more significant CCJs are ignored. This legacy makes remortgaging to prime products a long and expensive process. Borrowers with an adverse credit record frequently have to remortgage – often a number of times – in order to benefit from more competitive interest rates.”

On-Track makes the need to remortgage to obtain a prime rate a thing of the past. Borrowers are immediately rewarded for making payments on time and, if they keep their payments up to date, they will find themselves benefiting from a competitive prime rate as a matter of right.

Freedom’s On-Track mortgage range offers the following benefits:

Negates the cost and hassle of remortgaging to obtain a prime rate

Excellent value when compared against other non-conforming lenders (see attached typical examples)

Competitive lifetime tracker rates, with introductory 0.75% discount for 3 months

Rate reductions every 6 months, which are never taken away

Use of affordability calculation, rather than restrictive income multiples

Early repayment charges do not extend beyond the ‘rehabilitation’ period

Higher lending charge from 75% LTV at a rate of 3%, which is less than half the cost of most lenders who charge HLCs

Brokers requiring further information about Freedom’s On-Track product range can visit the company’s website at www.freedomlending.co.uk or phone 01625 546123.