Specialty lender Spring Finance relaunched its second-rate mortgage offering, introducing an interest-only buy-to-let (BTL) product.
The lender has brought out its ‘prestige range’, to complement its existing products, focused on mid-prime borrowers.
Prestige product rates start at 60 percent LTV and go up to 80 percent LTV, available in three-year and five-year fixed-rate terms.
Rates start at 7.65 percent for one demerit and 8.05 percent for two demerits.
Demerits include things like late payments, county court judgments and defaults, unsecured credit, and payday loans.
Second BTL charge
The second charge of BTL is aimed at homeowners who want to benefit from the equity in their property, and all come with an interest-only option of up to 75 percent LTV.
It ranges from 60 to 75 percent of LTV with rates without demerits starting at 8.25 percent and 8.55 percent for a demerit.
graeme wade (in the photo)head of secured loan sales at Spring Finance, said the second-rate market is growing month-on-month, and processing times are at the “cutting edge of service levels.”
He added that the lender has made several “positive improvements” to its underwriting system, including its demerit-based point system.
“These changes will have the effect of significantly reducing the time it takes to complete each loan. Our goal has always been to improve the product offering for our introducers and this new product relaunch does exactly that,” he said.
Andrew Bloom, owner of Spring Finance, said: “Spring has a reputation for offering an excellent product offering for applicants from a variety of different backgrounds. These new products, supported by the simplification of our subscription process, will further enhance the value we can add to our brokers.
“The relaunch of this product, along with our recently launched bridging proposal, demonstrates our continued commitment to the specialized financial market.”
Spring Finance launched in 2011 as a long-term second-tier lender, then entered the development and bridge financing market earlier this year to offer first- and second-tier loans on a regulated and unregulated basis.