Date issued: 8 Mar 2010

THE MORTGAGE WORKS LAUNCH A NEW RANGE OF GUARANTOR PRODUCTS

From Tuesday 9 March 2010, The Mortgage Works (TMW) is launching a new range of Guarantor mortgage products. The range includes a number of unique limited liability mortgage products, for those wanting to guarantee a smaller proportion of a loan and full liability products, for those able to provide support for the entire mortgage.

Product Highlights – Limited Liability
The applicant must be able to afford at least 70% of the loan amount when applying. In addition to their existing commitments, the guarantor must be able to afford the shortfall (a maximum of 30% of the debt) plus a further 10% tolerance.

• 3.99% 2 year fixed rate with 2% arrangement fee, available up to 75% LTV
• 4.99% 2 year fixed rate with no arrangement fee, available up to 75% LTV
• 5.99% 3 year fixed rate with no arrangement fee and £1,000 cashback, available up to 75% LTV
• 6.24% 2 year fixed rate with £895 arrangement fee available up to 85% LTV
• 2.99% 2 year tracker with 2% arrangement fee up to 75% LTV

With a requirement for a low deposit of 15% (85% maximum LTV), this range is also suitable for graduates who are likely to see their income increase over time, allowing the guarantor to be removed from the mortgage at a later date.

Product Highlights – Full Liability
The guarantor must be able to afford the entire mortgage plus their existing commitments (i.e. their own mortgage).

• 3.49% 2 year fixed rate with 2% arrangement fee, available up to 75% LTV
• 4.99% 2 year fixed rate with 1% arrangement fee, available up to 80% LTV
• 5.59% 2 year fixed rate with 1% arrangement fee, available up to 85% LTV
• 2.49% 2 year tracker with 2% arrangement fee up to 75% LTV

This range offers choice in terms of its alternative percentage fee structure, offering lower headline rates which can help cash-flow. There are no occupational restrictions either which is ideal for parents wishing to help their student children purchase a home.

Tracie Pearce, Head of Products, The Mortgage Works said: "The new range of Guarantor mortgages offer choice and flexibility for guarantors and first time buyers. Many lenders have Guarantor propositions but very few offer products specifically designed to cater for this sector. The Mortgage Works is delighted to support the housing market, helping first time buyers get a foot on the housing ladder."

Notes to editors

Limited Liability

• These products will be available to those who want to guarantee a smaller proportion of the loan
• Available to customers purchasing or remortgaging a property
• The guarantor(s) liability is limited to the applicant's shortfall plus 10%
• The combined affordability of the applicant and guarantor will service 110% of the lending
• Variety of products to choose from including low rates, low fees, cashback incentives, 2, 3 and 5 year terms and fixed and tracker options
• 10% capital repayment allowance allowed per year without incurring an ERC
• Available on Capital Repayment, Interest Only or a combination of the two

Full Liability

• Low deposit required, maximum loan to value 85%
• Alternative percentage fee structure allows lower headline rates which helps with cash-flow
• No occupational restrictions; this product may be of use to parents wishing to help their student children purchase a home
• Customers can overpay by up to 10% without paying an early repayment charge
• Available on Capital Repayment, Interest Only or a combination of the two
• The application forms (also available on the website) must be completed and returned via post to TMW