Cheshire BS takes fear out of credit repair

Amanda Jarvis

January 10, 2006

Intermediaries can now offer homebuyers who have a low credit score history a product which truly helps to repair an individual’s credit allowing them to apply for standard products, once the fixed rate period has ended.   

Cheshire Building Society’s head of intermediary sales, Andrew Oakes, said: “Our Assist range of fixed rate credit repair mortgages are growing in popularity for those looking for a competitively priced product from a mainstream brand. The product offers intermediaries a true credit repair solution with the opportunity to access products from the entire product range at the end of the fixed rate period. The Assist range will be further extended during 2006 as a direct result of feedback from intermediaries who have shown interest in the products.”

Homebuyers with a compromised credit history, whether that be the result of CCJs, bankruptcy or because they have defaulted on loan repayments; can apply for a credit repair mortgage that could improve their credit rating and ultimately, gain access to mainstream financial products that they may currently be excluded from.

The Cheshire's three-year fixed rate credit repair mortgage rate is 5.87 per cent fixed until 31.08.2008 changing to the Standard Variable Rate for the remainder of the term, currently 6.54 per cent. The overall cost for comparison is 6.7 per cent APR or 6.27 per cent fixed until 31.08.2008 changing to the Standard Variable Rate for the remainder of the term, currently 6.54 per cent. The overall cost for comparison is 6.8 per cent APR depending on the circumstances.

The Cheshire also provides online mortgage applications offering automatic decision in principle for first time buyers, buy to let, home movers and individuals looking to remortgage.  

The Credit Repair three-year fixed rate mortgage
Product Details:
Available online at www.thecheshire.co.uk/intermediaries or through one of the Society’s new packaging partners – Mortgage 2000 and Clear Group Administration.
* The maximum loan is 80 per cent of the value of the property.  Minimum deposit of 20 per cent.
* Fixed valuation fee of £175 up to purchase price (remortgage – estimated valuation) of £750k.
* No higher lending charge.
* Three months free Mortgage Care. Please note this refers to full Mortgage Care only i.e. Accident, Sickness and Unemployment cover.
* This product is portable (subject to the new application meeting lending policy).
* No compulsory insurance. An acceptable buildings insurance policy must be in place on or before completion.
* Minimum advance £25,000.
* Maximum advance £350,000.
* £495 Arrangement Fee. £100 (non refundable) is payable on application, £395 will be added to the loan on completion.
* In the event that the mortgage is repaid in full (or in part) during the fixed rate period an early repayment charge will be made by the Society of:-
3 per cent in yr one
2 per cent in yr two
the remainder of this period 1 per cent

The percentage charge will be made on the original amount advanced (or the amount of the capital repaid in the case of part repayment).

Flexible Features
Overpayments up to £5,000 per 12 month period can be made penalty free.
Payment Holidays.*
Lump sum withdrawals (minimum withdrawal £500, maximum withdrawal £25,000 per transaction).*
* Allowed up to the value of any accrued overpayments. Seven working days notice required.



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