Prestige reduces second charge loan rates

Prestige reduces second charge loan rates

Prestige Finance has reduced rates and relaxed its credit score requirements across its residential product range.

The second charge lender has removed the minimum credit score requirement on its prime products, available to those borrowers with no credit issues.

The lender's prime products have seen rate reductions, with a variable rate offer available at 3.69 per cent - down from 3.89 per cent - up to 65 per cent loan-to-value (LTV) and a £300 administration fee. 

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Prestige also reduced rates on its near prime range, available to customers with credit issues such as a county court judgements, now offering a variable rate at 4.99 per cent - down from 5.75 per cent - up to 75 per cent LTV. 

Changes to Prestige's loan terms now exceed the remaining term of a first-charge mortgage and, in its prime range up to 85 per cent loan-to-value, an accountant's projection can be used where a borrower can only provide one year of self-employed accounts.

Darrell Walker, head of sales second charge and commercial lending at parent company OneSavings Bank, said: "Second charge mortgages provide a unique tool and proposition that compliments the wider first charge market and we are delighted to bring to market some significant rate reductions supported by several criteria enhancements."

Martin Reynolds, chief executive of SimplyBiz Mortgages, said it was positive to see a lender championing direct access and making second charges accessible to a wider market.

Rob Jupp, chief executive at Brightstar, said it is an encouraging and positive sign that Prestige and OneSavings Bank are showing their commitment to the wider second charge market.

He said: "These rate reductions combined with the criteria enhancements and their expertise in this space can only benefit the 'seconds' industry."

Last week, the Finance and Leasing Association reported a continued growth in the second charge market during August - with business growing six out of the first eight months in 2018.

The growth is despite the Financial Conduct Authority stating in a review earlier this year that it found "significant issues" in the second charge lending market and telling all firms providing the service to review their processes.