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's 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' interest rates by 0.5 per cent every 12 months for the first three years before automatically reverting them to First National's 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.”