GEMHL launches deals for borrowers with minor credit defaults
Share
Specialist lender GE Money Home Lending is to add two new mortgages to its product range aimed at first-time buyers and those who have a minor adverse credit history, but denies that this is a return to sub-prime lending.
Rates for the first product, for borrowers who have experienced up to two credit defaults, start at 4.54 per cent. The second, which allows one County Court judgement and one default, will have rates starting at 4.64 per cent.
The lender is also increasing its loan to values from 70 to 75 per cent and cutting reversionary rates from 5.5 to 5 per cent.
The changes will take effect from April 20.
TFC Homeloans has been announced as a distribution partner for GEMHL’s range.
GEMHL says it has taken considerate judgements about its range because of the upturn in the economy, creating products for borrowers who have experienced minor blip in their credit history.
However, GEMHL stressed that this was not a return to sub-prime lending.
GEMHL marketing director Gerry Bell says: “We have got a couple of products for people which do not quite fit the high-street norm, customers who are clean but have a couple of minor blips in their credit history. These people are now finding it difficult to find mortgage options.
“We have try to strike a balance between being prudent and cautious, but also realise that there has been a slow and steady upturn in the economy. If we can help the customers in that margin, we are very happy to do so.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
