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Improved transparency for sub-prime tracker loan

Mortgage packager Pink Home Loans is rolling out a range of exclusive tracker loans funded by sub-prime lender Mortgages plc.

The loans, which Pink claims offer more transparency than most adversecredit products, start at 2.25 per cent over the Bank of England base rate for those borrowing 50 per cent loan-to-value. For every 10 per cent increase in LTV from 50 per cent onwards, the interest rate payable goes up by 0.5 per cent.

For example, borrowers taking out a loan at 60 per cent LTV pay 2.75 per cent over bank base rate, which, at its current level of 4 per cent, gives the customer a rate of 6.75 per cent.

Maximum LTV is 85 per cent up to £500,000 and the minimum loan is £25,001. The maximum loan is £1m up to 80 per cent LTV. Income multiples are 3.5 times plus single income and three times joint.

There is a redemption penalty of 6 per cent of the amount outstanding for the first three years. Brokers receive a introducer fee of 1 per cent.

Pink sales and marketing director David Copland says: “This product offers transparency and ease of use for the borrower combined with a base rate tracker feature which is unusual for an adverse mortgage product.”

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Lives: Wimborne, near BournemouthBorn: 1946, SwanseaAge: 55Education: Bournemouth School, Foyle College, LondonderryCareer: 1965 Pontin&#39s accounts clerk, 1965-1969 Wessex Building Society various positions, 1969-2001 Portman Building Society, mortgage administrator, branch manager, branch awareness campaign manager, mortgage controller, assistant general manager (financial services), group communications manager. Career ambition: “To be healthy, successful and moderately affluent.” Life ambition: […]

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