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New Start aiming to fill a gap

I am writing in response to the Product Matters column in the June 6 edition of Money Marketing with regard to the comments by David Hollingsworth.

The Mortgage Business has developed the New Start product in association with The Mortgage Partnership to meet the demands of what is seen at present as a gap in the mortgage market.

Fairly extensive research has been conducted, including discussions with the single-parent group Gingerbread which have provided an endorsement for the product.

Certain comparisons were made with other lenders, namely Portman and Alliance & Leicester.

However, unlike these other lenders&#39 products, the New Start is available on a self-certification basis.

This, combined with an individual underwriting approach instead of credit scoring, complements the requirements of the intermediary mortgage market.

Our experience to date shows that the vast majority of lenders are not answering the demands of divorcees when enquiries have been made.

A standard variable rate of 5.84 per cent, when offered on a specialist criteria-driven product, is similar to the normal variable rates offered by high-street lenders and therefore is not deemed to be punitive to borrowers.

This product can open new channels of business opportunity for mortgage brokers, especially through contacts at firms of solicitors, and demonstrates willingness by The Mortgage Business to look at new target markets, working in conjunction with mortgage packagers such as The Mortgage Partnership.

Mark Bergin

The Mortgage Business,

Chester

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