BMM revamps low-doc offering

by Mackenzie McCarty16 Apr 2012

Better Mortgage Management has announced changes to its low-doc product offering.

The mortgage manager has cut rates on its unlimited cash out loans, with pricing now starting at 8.44% for loans up to 70% LVR and 8.89% at 80% LVR.

Minor credit impairments of less than $1000 will also no longer result in the borrower's interest rate being increased on its range of specialist loans.

Earlier this year,BMM said it would offer unlimited cash out on low-doc loans along with higher loan amounts and an increased maximum LVR limit of 90% LVR.

Managing director Murray Cowan said low-doc lending was seeing a 'turning point' in loan options, with self-employed borrowers having suffered more than any other lending segment since the GFC.

“Previously self-employed borrowers that wanted cash out above 60% LVR had been locked out of the market and were effectively stuck with the loan they took out years before," he said.

“More options combined with the lowering of rates means more self-employed borrowers now qualify for a loan ,so there is an opportunity for brokers to go through their old customer files and contact borrowers who didn’t qualify for finance during the past 4 years, he said.

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