Second charge mortgage lender Spring Finance has launched a 9.56% variable rate to complement its portfolio.
This additional offering is aimed at helping clients with minor adverse on their credit profiles who, after being rejected by many lenders, might still fall into niche lending.
Head of sales Graeme Wade (pictured) said that, following market research and feedback from broker partners, last year Spring Finance increased its LTV to 75% from 70%, having a positive impact on the market.
He added: “We have always striven to provide a product to our broker partners that will help their clients who are in need of assistance. From a number of different circumstances, raise much needed funds and begin their journey back to main stream lending.
“I appreciate that a rate drop is not a new concept but we as a company feel it rewards those clients with minor adverse who are looking to improve their credit.
“This is just the first of many exciting changes from Spring Finance in the coming future.”
Steve Walker, managing director of Promise Solutions, said that credit repair is an area many brokers overlook because they cannot place this type of business on a remortgage basis.
He added: “It is good news for borrowers as it allows them to return to mainstream borrowing a year or so down the line whilst potentially reducing their credit outgoings which puts them in better shape to maintain a good credit history in the interim.
“It is also good for brokers as they can be rewarded for the loan and subsequent mortgage transaction whilst often gaining a customer for life. Springs latest enhancements make credit repair loans even more affordable and, compared to historic rates on offer, not too far away from the mainstream second charge market.”