View more on these topics

Pink leaps into market with new parachute mortgage

Pink Home Loans is bailing into the adverse credit market with its parachute mortgage.

The mortgage is aimed at people who are looking to buy a home but who either have a history of bad credit, or who have a number of county court judgements (CCJs) against them.

The mortgages rate is based around the London interbank offer rate (LIBOR). Clients will get a rate based on the level of LIBOR, and adjusted according to how many CCJs they have, if they have any arrears outstanding and what the loan to valuation amount is. A loan of up to 85 per cent of valuation, for a client with one to three months arrears in a year and CCJs totalling less than £2,000 will have a rate of 8.89 per cent, three per cent above the current LIBOR rate of 5.89 per cent.

A client’s rate can be reduced by 0.5 per cent upon completion of a year’s direct debit payments. However the rate cannot go lower than one per cent above LIBOR.

Compared to the rest of the market the Pink Home Loans product is not that competitive. According to Moneyfacts the cheapest adverse credit mortgage with a level tied to LIBOR for clients with CCJs and arrears is the 8.19 per cent mortgage from Future Mortgages. This offers a rate of 1.5 per cent above LIBOR for loans of up to 85 per cent of valuation.

Recommended

FTSE4Good launched by Roger Moore

FTSE is launching a new set of indices aimed at setting a global standard for socially responsible investment.Unicef goodwill ambassador and former 007 Roger Moore launched the fund at the London Stock Exchange on Tuesday. All licensing fees from the fund will be donated to Unicef.The FTSE4Good indices, covering UK, Europe, US and global sectors, […]

&#39Equitable knew risks of not reserving in 1970s&#39

Equitable Life must have been fully aware of the risks of not reserving against its liabilities as far back as the mid-1970s, according to top actuary Desmond Le Grys. Le Grys, who was managing director of Munich Re until his retirement in 1996, says instead Equitable relied on blind faith that it would be allowed […]

L&G bonds with performance

Legal & General has brought in the performance bond individual savings account (ISA)The ISA is aimed at investors who are looking for either income or growth from their investment. Investors can opt for either an income of seven per cent a year or growth of 40 per cent over a five year term.The product tracks […]

London Stock Exchange launches counterparty service

London Clearing House, the London Stock Exchange and Crestco are launching the Central Counterparty service for the London Stock Exchange&#39s electronic order books.The system gives the London securities markets post-trade anonymity and increases efficiency of settlement processing. London Stock Exchange chief executive Clara Furse says: “This central counterparty is good news for London and it […]

Europe: Volatile share prices create opportunities for long-term investors

Mark Page and Laurent Millet, managers of the Artemis European Opportunities Fund, look at why, how and where fluctuations in European markets can generate opportunities for their fund. When asked what the stock market would do next, John Pierpont Morgan is reported to have replied that “it will fluctuate”. His (apocryphal) answer proved accurate. Over […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com