Prestige increases second charge proc fees and pay rate stress tests

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  • 21/06/2016
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Prestige increases second charge proc fees and pay rate stress tests
Prestige Finance has increased proc fees and introduced a five-year fixed rate on its prime range, replacing its three-year product, which will stress test borrowers using the pay rate.

The changes are part of a move to simplify its product change by creating one prime range for loans up to £2.5m. All prime deals, irrespective of loan size, will benefit from the same set of terms.

All proc fees will be paid at 2% which is an increase for loan amounts over £200,000. The loan size referral threshold for prime and large loans has been increased from £100,000 to £200,000 while arrangement fees on all loans have been standardised at £300, representing a reduction on loans over £200,000.

Rates will now begin at 4.45% on loans of 65% loan-to-value (LTV).

Early repayment charges (ERC) will be applicable during the fixed period of the product term, but up to £499 can be repaid each month without incurring a charge.

Prestige, part of OneSavings Bank, has also changed its application process so brokers can include details of sub-mortgages, which form part of the first mortgage but are on different terms.

Darrell Walker, head of sales for second charges and commercial lending at OneSavings Bank, said the simplified approach to pricing is a response to the changing needs of customers.

“We’re constantly seeking to enhance our lending proposition so brokers can have confidence in recommending our second charge mortgages to their clients,” he said.

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