BM Solutions, a specialist lending brand of HBOS, has re-launched rates across its mortgage plus range, a series of offerings introduced in November 2006 combining a secured mortgage and unsecured loan. According to the company, its new rates are market-leading within the 125% loan-to-value secured and unsecured market.
Certain products in the range, which was intended to provide an alternative solution for first time buyers or those starting afresh following separation, now include additional features such as cashback and free valuations. According to BM, this provides an attractive option for those looking for lower starting costs.
Rates in the range now include a 5.65% two-year fixed product, a 5.99% two-year tracker with no early repayment charges, and a 6.25% two-year tracker with GBP1,000 cashback and free valuation. The company commented that these rates mean that, on a GBP150,000 mortgage and loan on a repayment basis, consumers can make a GBP70 saving on their monthly repayments compared to other fixed products on the market.
According to Mortgage Solutions, BM launched the range and then implemented the rate changes in direct competition with Northern Rock’s Together mortgage. The online publication said that HBOS met with around 20 top intermediaries in 2006 to discuss how best to take on the lender.
Chris Pearson, head of sales and marketing at BM, said: Following the refresh, BM now have the lowest fixed rates in this market by a mile. The other players don’t come close to competing.