OSB’s Prestige eases second charge rates and criteria despite raising risk concerns

  • 11/10/2018
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OSB’s Prestige eases second charge rates and criteria despite raising risk concerns
Second charge lender Prestige Finance has cut rates on all prime residential products and opened up its criteria for self-employed borrowers.


The moves come after OSB sales and marketing director John Eastgate recently told Specialist Lending Solutions that risk in the second charge market was not necessarily being reflected in prices.

“We have certainly seen pricing in second charge markets falling for some while, to the extent that we have, at times, determined that the risk-reward dynamic was not one we were comfortable with,” Eastgate said at the time.

This came after the firm admitted in its half-yearly interim results that it was not willing to increase lending risk to maintain its market share.

When asked about its previous concerns, Adrian Moloney, sales director at OSB (pictured), said: “These changes reflect our commitment to the second charge market and, when combined with recent changes to our mortgage propositions across the OneSavings Bank group, enable us to maintain our position at the forefront of helping brokers with specialist cases.”


Rates and criteria eased

The second charge arm of One Savings Bank (OSB) has now cut its cheapest rate to 3.69% while also cutting rates on some of its near prime range.

Prestige has also removed the minimum credit score for prime product applications and the loan term can exceed the remaining term of a first-charge mortgage.

And where only one year of self-employed accounts are available, an accountant’s projection can now be used on prime products only at up to 85% loan to value (LTV).

Darrell Walker, head of sales second charge and commercial lending, OneSavings Bank, added: “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.”

The changes were backed by Martin Reynolds, chief executive at SimplyBiz Mortgages and Rob Jupp, chief executive at Brightstar.

Reynolds said: “It’s great to see a lender such as Prestige, with OSB’s strong pedigree, championing direct access and making second charges accessible to a wider market.”

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