Secured Loan Company Makes A Comeback
Over the course of the past two years, we have seen several secured loan and home owner loan companies disappear from the market place altogether and many others withdraw their loan products due to a lack of wholesale funding, caused by the effects of the credit crunch.
Many specialist lenders have seen high default rates and arrears on their loan books, particularly in the areas of self certification loans and bad credit loans, thereby causing them yet further problems. But as the economic and financial situation slowly starts to improve in the UK, one such loan company has returned to the market offering new home owner loans for purchases.
GE Money Home Lending withdrew from the new home owner loan market in January this year, turning its focus to remortgage business for individuals wanting to switch their home owner loan to a new provider, rather than offering new loans. But now, the company has announced that it is to return to the new loan market, by offering a range of home owner loans and mortgages through it’s i group subsidiary brand.
The new loan products will be similar to the existing remortgage products and will include a one year discount loan and fixed rate loan deals over two and three years. all the deals will be available up to 70 per cent loan to value and will carry a large arrangement fee of £995 for the discounted rate, going up to £1,995 on the three year fixed rate loan.
Duncan Berry of GE Money Home Lending said “Obviously there has been a shift in the market towards purchases recently and therefore we thought now would be a good time to open up our products to purchase customers. We withdrew in January and now the market has opened up we have decided to offer our remortgage products to home purchase clients as well.”
