Packager The Mortgage Operation is launching a discount and cashback mortgage for first time buyers.
Funded by Bristol & West, the mortgage has a 2 per cent discount until January 1 2003. This takes its interest rate down to 5.49 per cent.
TMO says the £500 cashback makes the mortgage ideal for first time buyers. They can use the extra money to help pay some of their initial costs. But the mortgage can also be used for capital raising and remortgages.
The mortgage is available up to 95 per cent LTV. Cases with 85 per cent LTV or below have no mig.
Other features include no credit scoring - each case is treated individually - and income multiples of 3.5 plus 1, or 2.75 times joint income. A 5 per cent builder's and vendor's deposit is also acceptable.
TMO marketing director Frank Butler says: “First time buyers are facing an increasingly difficult time to make the first step towards buying a house. With rates continuing to climb, this product will ensure that borrowers are secure in the knowledge that their monthly repayments will be at a competitive discount over the next three years.”
TMO processes several hundred million pounds of mortgage applications each year. The packager is currently aiming to get more IFAs onside via a marketing push to promote its TMOS sourcing software.