Spring Finance has launched a 9.65% variable rate to complement its current portfolio of second charge products.
The move into the light prime sector is designed help those clients with minor adverse on their credit profiles who might still fall into niche lending that many other lenders would quickly reject.
Spring’s head of sales, Graeme Wade (pictured), said: “Here at Spring Finance we want to be seen as a proactive and reactive credit lender that adds true value to the lending market we sit in.
“Following market research and feedback from our broker partners, just last year we increased our LTV to 75% from the previous threshold of 70%. This was widely well received and had a positive impact on the market. We have always strived to provide a product to our broker partners’ that will help their clients’ who are in need of assistance; from a number of different circumstances, raise much needed funds and begin their journey back to main stream lending.
“With a successful refinance under our belt in 2018, we are now in an even better position to be able to fill the gap between prime products and those aimed at credit repair we’ve been offering, to put out a product designed around the clients needs. I appreciate that a rate drop isn’t a new concept but we, as a company feel it rewards those clients with minor adverse who are looking to improve their credit.
“This is just the first of many exciting changes to come from Spring Finance in the coming future so stay tuned”.
Steve Walker, managing director of Promise Solutions, added: “Credit repair is an area many brokers overlook because they can’t place this type of business on a remortgage basis. It’s good news for borrowers as it allows them to return to mainstream borrowing a year or so down the line whilst potentially reducing their credit outgoings which puts them in better shape to maintain a good credit history in the interim.
“It’s also good for brokers as they can be rewarded for the loan and subsequent mortgage transaction whilst often gaining a customer for life. Springs latest enhancements make credit repair loans even more affordable and, compared to historic rates on offer, not too far away from the mainstream second charge market.”