Specialist consumer lender Step One Finance has introduced zero early repayment charges across its range, alongside criteria changes and a senior underwriting promotion, following its New Year review.
With immediate effect, all Step One Finance plans will now feature no fixed early repayment charges, with borrowers required to give just 28 days’ notice to redeem.
The lender said the change is intended to give customers greater flexibility to repay or refinance, while providing advisers with additional confidence when recommending products.
To support the removal of early repayment charges, Step One Finance has also enhanced its lending criteria. Automated valuation models for residential cases are now available up to 95% loan to value, compared with 85% previously. For buy-to-let lending, AVMs have been extended to 90% loan to value, up from 75%.
SIMPLIFIED RENTAL COVERAGE CALCULATIONS
The lender has also simplified rental coverage calculations and introduced greater flexibility for married sole applicants, construction industry scheme workers and self-employed borrowers.
Neil Molyneux, director of sales at Step One Finance, said: “These enhancements reflect exactly what our broker partners have been asking for. Removing fixed early redemption charges gives borrowers genuine flexibility and allows advisers to recommend our products with even greater confidence.
“It also supports a smoother journey where circumstances change, without advisers needing to worry about potential penalties for their clients.”
Alongside the product and criteria changes, Step One Finance has promoted Kerry Vince to head of underwriting. Vince is well known in the intermediary market and brings extensive experience to the role as the lender looks to maintain consistency and service levels as volumes increase.
Michael Childress, chief executive of Step One Finance, added: “This is an important step in the continued evolution of our proposition.
“Alongside the product and policy enhancements, strengthening our underwriting leadership ensures we remain focused on quality, consistency and service as we grow.”
