Simplified non-conforming mortgage hits market

Capital First has launched a non-conforming mortgage product aiming to satisfy the demand from mortgage brokers for more simplified offerings in this area.

“There was a gap in the Capital First product range in the non-conforming space and we set out to design a product that was going to be competitive and well sought after in the broker market,” sales and marketing director for Capital First owner GMAC-RFC Steve Martinelli said.

“From speaking to a number of brokers one of the prime needs they had was to simplify the understanding of the non-conforming products themselves. Most of the products at the moment use a complicated matrix to a price or an amount they’ll lend against so our prime driver was to simplify the product more than anything else,” he added.

The product will be pitched at borrowers in the medium adverse range which Martinelli describes as those consumers with a low end criteria impairment, perhaps as the result of incomplete financial information, and a high end credit impairment, potentially stemming from not having met some form of bill payment.

It will be offered at a reasonable price with a competitive rate of interest beginning at 7.55 per cent.

All of the features expected by clients have been made available, including a redraw facility and the ability to fix all or part of the loan.

Brokers across the nation will be granted access to the product shortly.