Money Bulletin # 73

Highlights…

·         MPL 3 Month LIBOR reset at 5.72%

·         Fixed Rates remain unchanged

·         Discount rates reset

·         5 Year mortgage term introduced

·         Minimum advance on NP+ & NP reduced to £25,001

·         New valuation form reminder

·         Re-Offer fee introduced

·         Broker sold SPPI update

LIBOR Reset

Following the recent reset of 3-month LIBOR, Money Partners’ variable rate will be 5.72% with effect from 17 September 2008.

As a result all 2 year discount and reversionary rates will increase by 0.10% and 3 year discount and reversionary rates by 0.12%. Fixed rates have been renewed and remain unchanged.

Product Availability

The existing Origin Mortgage fixed rates remain unchanged and therefore will be renewed on our website on Wednesday 17 September 2008. Old discount rates will be removed from our website and MoneyPort from the close of business Tuesday 16 September 2008. Quotations, KFI production and access to our new discount and renewed fixed rates via eDecision will be available from Wednesday 17 September 2008. Please ensure that all cases are assessed via eDecision to ensure that a credit score has been obtained prior to submission or referral.

Pipeline Deadlines

Please note we will be unable to produce a mortgage offer letter on the old discount rates after close of business on Tuesday 16 September 2008. Any applications on the old discount rates received from the Wednesday17 September 2008 will be offered on the new discount rates.

Criteria Amendment

As a result of continued feedback from our broker partners we have made the following enhancements to our Origin Mortgage range:

• New minimum advance on Near Prime+ & Near Prime of £25,001
• Minimum term on all Origin Mortgage products of 60 months

These changes will be effective from Wednesday 17 September 2008.

Documentation

Click here for an updated version of the Mortgage Matrix or visit Money Port.

Reminder

New Valuation Form

Further to our recent announcement regarding the introduction of our amended valuation form please note that Money Partners will cease to accept the old style valuation form for completions from the 1 November 2008. Any valuations carried out from the 22 September 2008 must be completed on the new form.

New Re-Offer Policy

In future, when Money Partners’ fixed rates are reduced and where applicants with existing mortgage offer letters request a new offer on the lower rate, there will be a Re-Offer fee charged. This policy is normal practice for many lenders and simply affords the lender the opportunity to recover some of the funding costs incurred in providing the lower fixed rate whilst providing the customer with the choice of moving to a lower available fixed rate.

The fee is based on a percentage of the advance and will be added to the lender completion fee at completion. As such it must be treated in the same way as the standard lender completion fee in that it will be subject to the same LTV restrictions. Further details of this fee and its application will be made available prior to our next rate reset.

Broker sold SPPI

Please note that Money Partners are unable to fund broker sold Single Premium Payment Protection Insurance.

If you have any questions regarding this bulletin please contact the sales hotline on 0870 6094800.

Adam Henry

Director of Marketing & Product Development

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