Capital relaxes self-cert terms

Amanda Jarvis

March 7, 2003

Under Capital Home Loans’s new lending rules unveiled this week:

_ Applicants need only be trading one year before they are eligible for a loan.

_ The 90% upper ceiling on self-certification mortgages and remortgages has been
lifted to 90% of £350,000.

_ Those with a mortgage can automatically go to higher maximum loan limits within the appropriate band – 90% of £350,000, 85% of £500,000, and 80% of £625,000.

Bob Young, Sales and Marketing Director for Capital Home Loans, said: “The self-employed are often stuck between a rock and a hard place. They might only have been trading for 12 months, but are ineligible for most self-cert loans on the market because they require two or three years’ accounts.”

“Also higher loan limits and the abolition of remortgage rules will allow people access to the equity in their homes.”

Mr Young added: “We will be one of very few lenders prepared to go to 90% for remortgages. Most go to a maximum of 85% LTV.”

Capital Home Loans does not charge MIG on remortgages. The completion fee of £350 can be added to the loan. Brokers are paid an uncapped procuration fee of 0.5%.

The self certification product can also be used for let-to-buy. It is available as a Fixed Rate or Flexi Tracker, which are available from 4.74%.

Under the new thresholds first-time buyers have a maximum LTV of 85% to £200,000 and the same limit applies to unencumbered applicants

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