Prestige Finance has simplified its mortgage range by creating a single prime range for loans up to £2.5m.
The removal of separate pricing for its large loans now means all prime deals, regardless of size, will benefit from the same set of terms. As part of this product release, Prestige Finance has reduced its prime rates and introduced a new five-year fixed range (stress tested at pay rate) which will replace its three-year fixed rate range.
Prime and Large Loan Pricing Consolidation:
- Changes include reduced rates available from 4.45% on 65% LTV
- Prime product range now available to £2.5m (up to 75% LTV) or £200k (up to 85% LTV)
- Loan size referral threshold increased from £100k to £200k
- Proc fee for all loans now 2% – an increase for loans above £200k
- Arrangement fee on all loans now £300 – a reduction for loans above £200k
Fixed Rates:
- Five-year fixed rate introduced on the Prime product range
- Stress-testing of five-year fixed rate loans will be at pay rate (first charge will continue to be stress tested)
- Two-year fixed rates reduced, three-year fixed rates removed
- Early Repayment Charges (ERC) are applicable during a fixed rate period, but up to £499 can be repaid each month without incurring an Early Repayment Charge
Meanwhile, the application process has been changed so brokers can now include details of sub-mortgages, which form part of the first mortgage but are on different terms, when completing an application.
Darrell Walker (pictured), head of sales second charge and commercial lending at OneSavings Bank, said: “We’re constantly seeking to enhance our lending proposition so brokers can have confidence in recommending our second charge mortgages to their clients.
“We have an appetite to write both prime and large loan business which is evidenced by the simplified pricing we have announced, together with the increase in proc fees for larger loans.
“The competitive five-year fixed range with affordability stressed at pay rate comes in direct response to the changing needs of our customers.”