The products include a credit repair loan, funded by Bluestone, which rewards payments over a five-year term with an undisclosed but diminishing product rate of up to 90 bps at each stage, a buy-to-let which is simultaneously a first and second charge product and a bridging and buy-to-let product.
The mortgage distributor relaunched the Private Label brand on 4 July this year, in honour of the innovative 90s brand, which targeted under-served but clear mortgage lending niches.
At launch the range was available to 50% of the market and has subsequently also been extended to the Legal and General Mortgage Club.
Specialist lenders funding the new range include Castle Trust, Kent Reliance, Bluestone Mortgages and Kensington Mortgage Company.
Credit repair and BTL
The Credit Repairer, built on an Australian product model, is a five-year fixed rate with rates reduced at 12, 36 and 60 months by up to 90bps.
Steve Seal, sales and distribution director of Bluestone Mortgages said: “We have seen this product work successfully internationally as it rewards those who have shown commitment to improving their credit score.”
The Buy-to-let Booster is a simultaneous first and second charge buy-to-let mortgage, allowing landlords to increase leverage but meet required rental calculations. It is a collaboration of Kent Reliance Building Society (first charge) and Castle Trust (second charge) and the interest on the second charge is rolled up so there is no rental coverage on this part of the mortgage.
Matthew Wyles, executive director at Castle Trust Capital, said: “Over the course of the last few years we have progressively refined our skills in delivering this type of structure. We have worked in co-operation with Kent Reliance for a long time and this new initiative driven by Private Label will make our product accessible to an even larger number of landlords.”
Bridging and second home
The Bridging Buster targets investors who have purchased a property with short-term finance or cash, and wish to remortgage onto a traditional buy-to-let product. The investor will be able to capital raise for re-investment based on any post-works valuation uplift, within six months.
Finally, the second homeowner product allows the borrower to purchase or remortgage a second property up to 70% LTV, with features such as an interest-only option and “innovative income calculations” for both employed and self-employed applicants.
The borrower may have an impaired credit history and the property can be used as a holiday home, pied-à-terre or be occupied by a family member.
Steve Griffiths, sales and distribution director at The North View Group said it can be a fine line on cases with properties working between residential and investment use.
“By allowing use for holiday homes or a city base close to work, as well as providing a solution for those customers wanting to purchase a property for their immediate family, we are looking to meet the needs of customers in that space and look forward to working with the Private Label team in highlighting the message to the broker market,” he said.
Rob Jupp, CEO of Brightstar (pictured) said: “Private Label so far has been a huge success and following further feedback from our brokers plus research between our own and lender partner product teams, we have put together another suite of exclusive market-driven products.”
He added: “But we’d also like to offer brokers the opportunity to be involved in creating new products and I would like to hear directly from you about the areas and criteria that would most help your clients.”
The products are all sourcing system-listed on Twenty7Tec, Mortgage Brain and IRESS and the Easysource instant quote and tracking system and planning for the third tranche is already underway.
Jupp said: “The work has been extensive in the nine-month build up to launch on the second tranche. If products don’t exist, the risk is people think there’s a reason for it and not all the projects succeed ultimately. It’s a numbers game and it takes significant investment.”