‘Credit Repair’ Mortgages With ‘Switch To Prime’ Broker Fee

Press release published January 2006 by Scarborough Building Society

Scarborough Building Society is offering a way out for people trapped by spiralling debt problems.

Research has shown that the number of people falling into the traps of bankruptcy or having county court judgements recorded against them, is growing at a rapid rate.

Now the Scarborough is launching new Credit Repair mortgages. Part of its move into new ‘light adverse’ product territory, it will act as a lifeline for those needing to get their finances back under control.

The suite of Credit Repair fixed and tracker products include features such as competitive interest rates compared to loans from other providers geared towards this consumer group, and the option to wipe the slate clean and revert to a prime product from the Society’s core range after three years.

Customers can choose one of four Credit Repair product versions, to suit their individual circumstances. These are a Flexible Stepped Tracker, a Fee Assisted Flexible Stepped Tracker, a Flexible 3 Year Fixed/Tracker combination or a Fee Assisted Flexible 3 Year Fixed/Tracker combination, all at rates of between 5.79% and 6.19%.

Some also offer additional incentives such as refunded valuation fees, cashback, and reduced arrangement fees.

In line with the new product launch, the Society will also be offering enhanced procuration fees of at least 0.65% to brokers for introducing potential new customers to the above deals, plus an additional 0.20% retention fee after three years if the broker recommends the ‘switch to prime’ facility.

Tony Burdin, Head of Retail Strategy, said: ‘This is an exciting move for the Scarborough.

‘Lenders are having to innovate and constantly explore new product areas and markets to keep pace with changing demands.

‘We believe it is our duty, as a responsible lender and a mutual building society, to provide innovative solutions to help people cope with these pressures.

‘We are proud of our new Credit Repair mortgages because we believe they offer a controlled solution to people who are sinking under the pressure of keeping up repayments on their mortgages, credit and store cards and loans – or worse, bankruptcy and county court judgements.

‘Dedicated staff working on our Intermediary Desk are ready and waiting to help brokers find one of this new suite of products which is suitable for their clients.

‘We can also offer a range of additional services to help the whole application process run more smoothly, including providing Key facts Illustrations the same day, so long as we receive their requests by 12 noon.’

The Credit Repair products represent a new approach to lending - the latest strand of a strategy which over the past 18 months has seen the Scarborough completely overhaul its mortgage and savings product ranges.

In line with this, it has also been developing its intermediary relationships and service, with steps including the creation of the new Broker Desk, with extended opening hours to support intermediary service needs. A new online Broker Portal on the Society’s website will follow later this year.

Any intermediaries wanting more information can contact our Broker Desk directly on 01723 340812, or access information via the web at www.scarboroughintermediaries.co.uk.

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