Following the announcement yesterday of new criteria from Spring Finance, master broker Promise Solutions has praised the new terms as a major breakthrough for customers with an adverse credit history.
Speaking on behalf of Promise Solutions Steve Walker said: “The secured loan industry has moved significantly to help credit impaired borrowers, particularly with the recent changes at Prestige and Blemain to ignore adverse credit over 12 months old. However there are many borrowers who cannot take advantage of these terms and need a solution right now.”
Walker explained: “The key change at Spring is increasing the LTV from 65% to 70% which on a loan of up to £100,000 is fantastic. As a result of these changes borrowers in the 65% to 70% LTV bracket can borrower at much lower rates. We have run an example through our sourcing platform and on a £50,000 loan at 70% LTV the repayment could now be £160 per month cheaper over 15 years. That is a saving of over £28,000 over the term of the loan.”
Spring will lend up to £100,000 at 70% LTV and accept up to 6 months current mortgage arrears.