100pc LTV is back
Promise Solutions has launched the loan with an unamed “multi national conglomerate”.
Loans are available up to £100,000 per couple over 15 years and can be used as a deposit along side a traditional mortgage and to cover other costs associated with the purchase.
Steve Watker, managing director at Promise, said: “There has been much comment in the consumer press about home buyers being unable to escape negative equity or get back on the property ladder.
“This new loan goes a long way towards answering this problem and also will open up many more opportunities for brokers.”
Walker calls the loan a “very straight forward” CCA regulated loan.
There are no fees, over payments are permitted without penalty and there are no ERCs.
Subject to affordability the loan can be taken out by just one party to the purchase if the other party has imperfect credit.
It can also be used by first-time buyers to purchase shared ownership property or for right to buy purchases.
The loan completes via the lender’s solicitors which also handle the purchase legalities.
Walker added: “During our prelaunch some brokers were concerned that mortgage lenders would not accept a loan as a valid deposit but we are pleased to say this is not the case and one of the UK’s largest lenders is already completing mortgages alongside this loan.
“This type of loan as been used very successfully in the new build sector and is now available to the intermediary market.
“We want to make applying as simple and transparent as possible and have therefore provided the prequalification criteria to brokers on our website plus created a simple application pack which can be completed in minutes. Once this is sent to Promise there is little else the broker needs to do other than concentrate on putting the mortgage in place.”
Walker refused to name the unsecured lender.