View more on these topics

Chapter and adverse from Chelsea

Chelsea Building Society

Prospect 2 Year Fixed Rate

Type: Fixed-rate adverse credit mortgage

Fixed term: Until March 31, 2007

Fixed rate: 6.39%

Minimum loan:25,000

Maximum loan: Up to 85% of valuation subject to a maximum of 250,000

Income multiples: Up to 3.75 times principal income plus second or 2.8 times joint

Conditions: Maximum 3,000 in CCJs, current and satisfactory IVAs allowed, discharged bankruptcy and past repossessions considered, overpayments up to 20% a year allowed without penalty

Arrangement fee: 395 plus 245 administration fee

Redemption fee:3% of amount repaid until March 31, 2007

Introducers fee: Subject to negotiation

Tel: 08702 404808

This Prospect mortgage is a two-year fixed-rate mortgage for people with adverse credit.

Priestfield Webber proprietor Malcolm Martin says: “This is an excellent fixed rate for clients who have had previous adverse credit problems up to a maximum of 3,000 worth of CCJs. The redemption period runs to the end of the fixed term, which is superior to many other sub-prime lenders. These usually have a redemption overhang.”

Martin thinks the income multiples are generous. He adds: “A free valuation is available and overpayments up to 20 per cent of the monthly payment are acceptable without any penalty.”

On the downside, Martin complains: “The product is only suitable for clients who can prove their regular income and does not apply to the self-certification market. Although overpayments can be made, interest is calculated annually and as such it cannot be construed as a fully flexible mortgage.”

Scanning the mortgage market for potential competitors Martin says: “Birmingham Midshires has a two-year fixed rate at 6.69 per cent, which will cater for a maximum of 5,000 in CCJs. Although the income multiples are restricted to 2.5 times main income plus second, three times joint income is available if required.”


Suitability to market: Good
Flexibility: Average
Charges: Good
Adviser remuneration Good

Overall 8/10


Nationwide’s Stuart Bernau becomes new CML chairman

Nationwide Building Society commercial and treasury director Stuar Bernau today becomes the chairman of the Council of Mortgage Lenders.He succeeds the former chairman, Standard Life Bank’s Anne Gunther.The deputy chairmen are RBS group director of mortgage sales and intermediary development Charles Haresnape and Cheltenham & Gloucester and Lloyds TSB bank savings managing director Jon Pain.Stuart […]

Regulation issue

The mortgage industry needs to focus on ensuring that the public are fully aware of the big changes brought by regulation.

University Trust Fund targets lower income families

Childrens Mutual says its Child Trust Fund is an ideal way for poorer families to fund their childrens university education.The fund, which it runs under the name Baby Bond, could accumulate to 10,212 over 18 years, with a monthly contribution of just 25 says Childrens Mutual. Childrens Mutual chief executive David White says “This is […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm