Mortgages plc adopts BBR based pricing model

Amanda Jarvis

January 30, 2006

As a consequence, the majority of interest rates have been reduced across its adverse product ranges.

The new pricing structure will include a choice of discounted and fixed rate mortgages over periods up to 3 years, across Mortgages plc’s full range which encompasses Near Prime Plus, Near Prime, Superlight, Light, Medium, Heavy and Fastrack products.

Product highlights include:

– 1 Year discounts from 4.20 per cent
– 2 Years discounts from 5.30 per cent – with no overhang
– 3 Years discounts with stepped rates from 4.55 per cent – with no overhang
– 2 Year fixed rates from 5.30 per cent – with no overhang
– 3 Year fixed rates from 5.35 per cent – with no overhang
– 3 year fixed rates with a 1.50 per cent arrangement charge (minimum £1500) from 5.05 per cent – with no overhang

Peter Beaumont, sales & marketing director at Mortgages plc, said: “Our move to BBR based pricing has been warmly welcomed by intermediaries, as have our new discounts and fixed rate deals, many of which do not include an overhanging redemption period.

“Our 2 Year discount is available with no early repayment charge overhang on all products and we are also offering a 3 year fixed rate option which features a lower rate and a 1.50 per cent arrangement charge, which can be added to the loan in most instances. We are therefore passing on the full benefit of the reduced rate to our borrowers.

All pricing options are now available across all applicable LTV bandings and we have reduced the ERC on Near Prime 1 & 3 year discount products.”

“The deals we have on offer today are some of the most competitive in their class. We have ambitious plans to further increase Mortgages plc’s market share during the year ahead and the new pricing structure announced today has been designed to enable us to realise that ambition.”

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