GE Money Home Lending reacts to growth markets

GE Money Home Lending has refreshed its igroup and First National product ranges, in response to recent market developments and to make home ownership and property investment more accessible and convenient to borrowers.

igroup is aligning other aspects of its proposition in Northern Ireland to those of the rest of the UK. This will allow homeowners to release up to 100% of the equity within their property to refinance existing debts, raise capital to support their businesses or to invest in additional property. To make the product range more accessible to more borrowers, changes to the igroup range will include:

100% full status and 95% self-cert in Northern Ireland
Improved affordability for those earning more than £20,000 per annum
Extended loan terms of 5 to 35 years
Unlimited County Court Judgements and increased maximum loan sizes across its GEM 5 to 7 non-conforming plans
Increased LTV’s on a range of ex-local authority and non standard properties

Duncan Berry, Director of Mortgage Sales, GE Money Home Lending: “House prices have more than tripled in Northern Ireland over the last 10 years and GE Money Home Lending has developed its propositions in this region across the igroup and First National product ranges to give our borrowers the opportunity to benefit from this remarkable growth. We have also witnessed staggering growth across the UK Buy to Let market. Not only is it outperforming the market as a whole, but it looks set to remain popular as high tenant demand and rising rents continue to drive business.

“Although Northern Ireland is one of the more affordable regions of the UK, with an average house price of £162,821, increases in house prices have not been matched by salary increases and home ownership is a challenge for many.”

First National has expanded loan sizes on Medium and High adverse loans and enhanced LTV criteria on ex-local authority flats within Near Prime. According to recent industry data the average portfolio size on a Buy to Let (BTL) investor is now over £1.5 million. In response to the surge in the BTL market, First National has made the following improvements to its range:

Increased portfolio value by 50% - up to £1,500,000
Expansion of loan sizes
Lower minimum loan amount

Berry summarised by adding: “Earlier this year, GE Money Home Lending surveyed UK brokers on their outlook for 2007, with three quarters claiming that Buy to Let will be the most important growth opportunity for them in 2007. GE Money Home Lending sees Buy to Let as a growing sector and we will continue to build upon and strengthen our competitive and accessible products to meet the rising demands.”