Rooftop extends right-to-buy range
The lender has also launched a two-year fixed and a three-year stepped discount rate to add to its right-to-buy range.
With the stepped discount product, the rate is based on LIBOR of 4.60 per cent and clients can expect a discount of 2.5 per cent in the first year, falling to 1.5 per cent and 1 per cent in the second and third years respectively. The two-year fixed rate starts at 5.85 per cent.
Rooftop is also ignoring defaults and while it will consider clients with current CCJs, it will ignore them if they have been cleared for two years.
Michael Brill, director at Baronworth Investment Services, said: “The deals are very reasonable, especially with no higher lending charge and no overhang, so for the right client they are competitive.”
Rooftop claims the move is in response to increased interest from clients, with right-to-buy now accounting for 5 per cent of its book.
Alison Beech, sales and marketing director at Rooftop, said: “We launched a limited product range in May 2005 and this has proved very successful. So far, right-to-buy accounts for 5 per cent and now that we have extended the range, we hope that figure will increase. We have a number of packagers who deal in our right-to-buy products and it was important we extended our range for them.”
Despite right-to-buy business tailing off since its high watermark in the 1980s and early 1990s, there is still a significant amount of business being written, with 40,000 right-to-buy mortgages written in England last year.