Sovereign launches two competitive non-formula home loans
Sovereign has launched two non-formula home loan products which will no doubt cause waves in the mortgage industry.
Thursday, November 11th 2004, 7:42AM
It has launched a Go Low-Doc and Go-First Home into this competitive part of the lending market.
The products will cause waves as they have standard interest rates, as opposed to all the other products in the market which tend to be priced at a premium to prime rates of between 1 and 1.2%.
" While there is an upfront lenders mortgage insurance fee, it is considerably lower than the net effect of a higher interest rate,” Sovereign’s marketing manager home loans Sheryn Atkins says.
“An added benefit is that our Go home loan is also one of the few transactional banking packages offered for these types of products.”
Sovereign’s national sales manager of home loans Malcolm Aston says the products are “very competitively structured” and they give brokers the opportunity of adding real value to their clients.
“The development does not stop with the recent launch. Based on extensive experience gained working exclusively in the broker market, these products will be continuously reviewed going forward."
The Go Low-Doc home loan is targeted people who have been self-employed for a minimum of two years and have good equity in your home, or a 20% deposit. Proof of income is not required.
The Go First Home loan is for recent immigrants with no financial history, young professionals returning from overseas, or young professionals with high income but no savings or someone who is recently separated or divorced and have just been through the financial settlement. Having a good credit history is essential for both products.
Both loans are funded through Sovereign's sister company, ASB Bank.
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