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First Nat in bid to end stigma over sub-prime

First National Mortgage Company is rolling out an intensive ad campaign railing against the negative stigma it believes sub-prime borrowers are forced to endure.

FNMC, which is Abbey National&#39s specialist lending arm, is starting a two-pronged mailing and advertising campaign targeted at mortgage brokers to show how potential borrowers with impaired credit can be made to feel “unattractive” when looking for a loan.

As part of the move, it is rebranding its range for borrowers with poor credit histories and is relaunching several products, including its fixed and flexible tracker loans, to allow good borrowers with good payment records to switch to mainstream rates within a few years to help rebuild a good credit rating.

Loans start from 5.99 per cent and reward regular payments by cutting borrowers&#39 interest rates by 0.5 per cent every 12 months for the first three years before automatically reverting them to First National&#39s variable rate, currently 6.74 per cent.

Sales director Ron Howell says: “No one should be stigmatised as a result of a poor credit history or different financial circumstances, particularly when it is considered that two million CCJs are issued every year.

“Mortgages for those with a credit history should be designed to reward good payments and assist borrowers restore their credit rating.”


PIA expels defaulted IFA firm

The FSA is consulting the industry on proposals to regulate the disclosure of information of the open market option for annuities and endowment policies. As revealed in Money Marketing, the regulator plans to make it mandatory for policyholders to be informed of the option to purchase an annuity from a provider other than their pension […]

Leeds & Holbeck gets flexible

Leeds & Holbeck Building Society is getting flexible with its latest capped-rate mortgage.The mortgage is capped at 6.39 per cent for the first three years of the loan and has a discount of 1.4 per cent for the first six months. This gives it a current payable rate of 4.99 per cent.Called the flexible mortgage, […]

Epic time for split-capital investment trusts

Epic Asset Management has introduced a split-capital investment trust based in the Isle of Man.The equity partnership investment company aims to produce income at 10 per cent a year for investors who hold income shares and growth of at least 3 per cent above the LIBOR rate for capital shareholders.It invests in the shares of […]

Clerical&#39s GPPs still being sold via benefit firm

Clerical Medical is still selling pensions in the group market through former Equitable Life employee benefits arm EB Solutions despite pulling out of the IFA market. Clerical says it plans to relaunch its brand in the IFA channel ahead of its re-entry into the group pension market early next year. While it scotched rumours that […]


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