Genesis Home Loans is hoping that the sparkle of its new mortgage will appeal to borrowers.
The Genesis amethyst fixed rate mortgage is aimed at the self-certification market, made up of employed and self-employed people who have had trouble getting a mortgage as they have found it hard to prove how much they earn.
The mortgage has a rate set at 6.99 per cent until April 1, 2001 for loans of up to 85 per cent of the value of the property, with a maximum loan limit of £250,000. If borrowers are able to put down a deposit of 40 per cent of the value of the property then the maximum loan goes up to £400,000.
Borrowers are allowed a maximum of three months mortgage arrears in the past year, along with any number of county court judgements up to a maximum of £3,000.
Genesis has fixed the arrangement fee at £395 and there is a redemption penalty of 5 per cent of the advance in the first year, 4 per cent in the second year and 3 per cent in the third year.
The Genesis mortgage is not that competitive when viewed against the market. The lowest rate available on two-year fixed rate self-cert mortgage market is from Pink Home Loans. This has a fixed rate of 5.75 per cent until March 1, 2003 for loans of up to 85 per cent of valuation. Pink Home Loans will refund any basic valuation fees or legal fees if its experts are used.
However, although it has a lower rate the Pink Home Loans mortgage is less accessible than the Genesis mortgage. Borrowers cannot have more than three CCJs, to a maximum total of £1,000, along with a maximum of one months mortgage arrears in the last year.