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Derbyshire joins with Pink for move into adverse

Pink and Derbyshire are launching a non-conforming mortgage range, signalling a move by the society to diversify into niche areas.

The range features loans from near prime through to heavy adverse and will be distributed and packaged exclusively by Pink. This is a significant move for Derbyshire, which has so far concentrated on sub-prime by aquiring portfolios through its Derbyshire Home Loans subsidiary.

Pink has increasingly been securing distribution and packaging deals in the sector, having announced partnerships with Freedom Lending, Platform and Mortgage Express.

The light adverse range includes fixed rates at 6.2 per cent for two years and 6.4 per cent for three years. Two tracker mortgages are available until October 2007 and October 2008 at bank base rate plus 1.5 per cent.

There are no overhangs but early repayment charges apply at 6 per cent of the amount repaid in the fixed or tracker period.

Full status and self-cert options are available. Net commission is available up to 1 per cent on heavy adverse mortgages.

Derbyshire head of intermediary support and development Tony Capon says: “There are a lot of pressures on prime product sales between building societies.

“We remain committed to prime but need to augment our presence in other areas so we are becoming more aggressive in the adverse market.”

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