Due for launch into the buy-to-let market on 1 June as a subsidiary of Norwich & Peterborough Building Society (N&P), Astra claimed it would be able to offer more competitive products as it could price based on individual risk.
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The lender also aimed to offer brokers and borrowers long-term value by concentrating on longer-term fixed and lifetime tracker products; launching with a lifetime tracker priced at Base Rate plus 0.33 per cent.
David Jervis, chairman of Astra Mortgages and business services director at N&P, commented: “Risk-based pricing linked to our Basel II models gives Astra a competitive edge in the market. The lower the risk a customer represents, the lower the rate we will be able to offer them. Also, because service is so important to brokers, we will undertake to have offers processed and returned within eight working days, where everything required is provided with the application.”
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Stephen Brown, senior technical director at Moneyquest, said: “It’s something we’d view very positively, especially as we have a lot of high net worth clients and being able to offer them almost a bespoke product is good. Also, there are a lot of people out there who have led agreeable lives and should be getting a better deal, so it’s maybe time we moved towards more individual pricing.”
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