The product range will include deals for minor adverse customers, self-employed borrowers and customers up to 80 years of age.
The intermediary-only specialist lender will accept applications from a range of channels including mortgage clubs, networks and specialist distributors.
A rolling £1bn commitment from funders TwentyFour Asset Management has been agreed and the lender plans to service its loans in-house.
The product range will be available up to 85% loan-to-value with a two-year tracker that starts at 2.19%, or as a two or five-year fix with rates starting at 2.41%. The lender is offering capital and interest loans from launch but said ‘plenty of innovation’ is on the way.
The range is available to homebuyers and remortgagors and rates revert to LIBOR plus 4.5 to 5% at the end of the fixed or tracker rate period.
Rates are dependent on the borrower’s credit history, which will fit them into one of the nine underwriting bands. Brokers will be able to submit, track and manage their applications online as well as receive an immediate decision in principle.
Pothecary said: “Launching a new lender from scratch has given us the ability to design our systems and our products so they work for intermediaries and borrowers today. We recognise the lending landscape has changed, working patterns have changed, people are in employment longer and making use of mortgages later in life. There are more contract workers and people have had issues with their credit history, often through no fault of their own.
“Our range is simple and meets the needs of all of these segments of the market at affordable and competitive rates.”
