Bananas launches adverse product

Ramesh Sharma

June 1, 2004

Available from 5.85 per cent, the ‘Unlimited Sub-Prime Arrears and CCJs Mortgage’ allows for customers with ‘difficult’ credit histories, large arrears, CCJs and satisfied IVAS to obtain a mortgage.

Available on a 2 per cent discount for 18 months or a 2.25 per cent discount available until May 2007, the product then reverts to LIBOR plus 3.5 per cent. Income multiples of 3.75 times single or 3.25 joint apply and the deal includes a procuration fee of 1 per cent, up to a maximum of £10,000, with additional loading of 0.5 per cent.

There is an early repayment charge of 6 per cent during the first three years of the offer with no higher lending charge for the mortgage. A completion fee of £499 is also in operation.

Sue Cox, manager of Bananas Inc, said the product would appeal to the increasing market sector of those with adverse credit. “Intermediaries often have clients with extensive adverse backgrounds who want to turn over a new leaf but who really test the broker’s sourcing skills,” she said.

“This product is designed for such cases and will enable more individuals to escape from their credit histories and get back onto the housing ladder.”

Sheridan Bradley, mortgage adviser at Lodemead, agreed the product would suit the heavy adverse market but said it must not be the first option. She commented: “I think it’s a brilliant product to help those who have nowhere else to turn when all other lenders have refused to lend. However, this deal must be used as a last resort and not as an easy option to place business for the mortgage broker.”

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