Newlife launches £40k first-charge mortgage
The product called the Simple Life Mortgage can be used for almost any purpose and further advances can be considered at any time at a minimum of £3,000.
Underwriting will be flexible appealing to applicants who can afford to make monthly payments and want a loan without paying any costs up front.
The product comes in three different plans, with the cheapest being at a fixed rate of 9.52% for three years with no CCJs or defaults.
The most expensive comes at a fixed rate of 12.19% for three years for self-employed borrowers with one CCJ or default within 20 years.
Available on a capital and interest repayment basis, the deal also allows overpayments at any time without penalty however borrowers cannot pay off the entire mortgage at once without incurring a charge.
Newlife will offer borrowers a facility to roll over retirement and convert it to a lifetime mortgage.
Peter Lucas, chief executive of Newlife, said he expected the average loan size to be between £20,000 and £25,000 and the average borrower to be over 40 looking to release a cash lump sum for a one-off expenditure.
He cited examples such as for a family member’s wedding, education fees or home improvement.
Lucas said: “After our rebrand as Newlife – home related finance in July this year, the launch of the Simple Life Mortgage is tangible evidence that we are committed to expanding the range of products our intermediaries can offer to their customers.
“It provides Newlife with the scope to realise its ambitious growth plans for the future and means we can offer a more comprehensive range of home-related financial products designed to satisfy differing customers’ needs.
“As we deal exclusively through intermediaries this new product has been developed specifically in response to feedback from advisers.”