BM Solutions has thrown down the gauntlet to Northern Rock by relaunching its Mortgage Plus range, which is in direct competition with Rock’s Together product.
The offerings both combine a mortgage and a secured loan to lend up to 125 per cent loan to value and are the only products of their kind in the market.
BM launched its range in November as a direct challenge to Rock’s product, which represented 31 per cent of its gross lending last year, up from 29 per cent in 2005.
BM’s range now includes a 5.65 per cent two-year fixed product, a 5.99 per cent two-year tracker with no early repayment charges and a 6.25 per cent two-year tracker with 1,000 cashback and free valuation.
BM says on a 150,000 mortgage and loan taken out on a repayment basis, borrowers can save 70 on monthly repayments compared with other such products on the market.
Head of sales and marketing Chris Pearson says: “BM now has the lowest fixed rates in this market by a mile. The other players do not come close to competing.”