The Mortgage Lender (TML), which is due to launch next month, has outlined aspects of its product range.
The lender, which is being headed up by former Mortgages Plc founder Trevor Pothecary (pictured), is to offer products for the self-employed, those who need a mortgage later in life, and those with impaired credit.
The products will new available up to 85% LTV, with a two-year tracker starting at 2.19%, or as a two or five-year fixed rated from 2.41%.
The range is residential only – products are for homebuyers and those remortgaging. Rates revert to Libor plus 4.5-5% at the end of the fixed rate or tracker period.
The intermediary-only lender will be distributing its products through clubs, networks and packagers. It published last week the details of the five initial clubs it will be partnering with.
Pothecary, TML’s chief executive, said: “Launching a new lender from scratch has given us the ability to design our systems and our products so they work for intermediaries and borrowers today.
“We recognise the lending landscape has changed, working patterns have changed, people are in employment longer and making use of mortgages later in life. There are more contract workers and people have had issues with their credit history, often through no fault of their own.
“Our range is simple and meets the needs of all of these segments of the market at affordable and competitive rates.”
Pothecary told BestAdvice that TML was looking to lender £250m in its first 12-18 months in operation, with self-employed lending being the largest element.