All its loans now have no fixed ERCs, with just 28 days’ notice required to redeem. The lender said this would give borrowers more freedom to repay or refinance.
Further, Step One Finance has updated its lending criteria. It will now offer residential automated valuation models (AVMs) up to 95% loan to value (LTV). This is a change from the previous maximum of 85% LTV. Meanwhile, buy-to-let (BTL) AVMs have risen from 75% to 90% LTV.
Additionally, the lender has simplified its rental coverage and made the process more flexible for married sole applicants, Construction Industry Scheme (CIS) workers and self-employed borrowers.
Neil Molyneux (pictured), director of sales at Step One Finance, said: “These enhancements reflect exactly what our broker partners have been asking for.
“Removing fixed early redemption charges gives borrowers genuine flexibility and allows advisers to recommend our products with even greater confidence.”
Step One Finance has also announced the promotion of Kerry Vince as its head of underwriting. She has worked for the lender for more than five years and was previously its underwriter.
Michael Childress, CEO of Step One Finance, added: “This is an important step in the continued evolution of our proposition. Alongside the product and policy enhancements, strengthening our underwriting leadership ensures we remain focused on quality, consistency, and service as we grow.”
In September, the firm selected Phoebus Software as its mortgage servicing partner.
