New Range for Trustguard and IMLA not Happy!
Posted on Saturday, May 10, 2008 at 9:44 amTrustguard has launched a new 90% LTV self-certification range.
Kensington and Trustguard together will be giving rates starting at Base rate plus 1.69% for a self certified two year tracker. These will be rolled out to the self employed, the employed and prime first time buyers. They will be available for buying a new property or remortgaging
Trustguard’s National Sales Manager, Sian Brown was quoted as saying: “Currently there is a big gap in the market where these 90% LTV self certification products used to reside. Lots of lenders have withdrawn these products which has left lots of brokers struggling to meet demands from clients. The number of competitive products in this are has shrunk significantly. We believe this new range will assist a lot of brokers in fulfillling the demand for these products.”
There is also the option of either a 2-year fixed at 6.99% or a 3-year fixed at 6.89%. A completion fee of 1,999 can be added to the loan above the maximum LTV. There is no Higher Lending Charge and the maximum loan size is 500,000.
Overpayments of up to 10% are allowed per year. Applicants should have no CCJs within the last three years, no arrears during the past 12 months, no defaults in the previous 3 years, no IVAs and must never have been a bankrupt. The reversion rate is BBR +2%.
Philip Collins, chairman of the Office of Fair Trading (OFT) will be the keynote speaker at the Association of Finance Brokers’ (AFB) annual dinner on 1st July 2008. It is to be held at the Drapers Hall, London. AFB’s chairman, The Rt Hon John Gummer, MP, will also be speaking.
Robert Sinclair, director of AFB said: “We are delighted to announce that Philip Collins will provide our after dinner speech. As an acknowledged expert in the area of European and Competition Law, Philip is uniquely placed to provide insights into changes in lending markets, and the forthcoming Competition Commission report on payment protection. It will be a great opportunity to hear, first hand, from the man who governs the OFT.”
The FSA’s (Financial Services Authority) effectiveness is being questioned by the IMLA (Intermediary Mortgage Lenders Association) after the FSA published it’s 2nd stage of the Mortgage Effectiveness Review.
Peter Williams, executive director of IMLA, said: “IMLA welcomes the publication of the second stage of the Mortgage Effectiveness Review - although in reality the key findings are unsurprising and in some respects take the industry little further. Almost all sub-prime mortgage sales are through intermediaries, who are clearly best placed to take account of the very specific circumstances that such borrowers face. Not surprisingly, customers rely on their broker’s professional advice and expertise.”
“On the whole these findings are complementary to the Financial Services Authority. As far as the MCOB (Mortgage Conduct of Business rules) I think the results of this study question the regime already in place and suggest the over-engineering could be simplified. I’m hoping these findings will be properly considered in the MCOB review.”
