By Kevin Rose
Investment bank Lehman Brothers has made widespread changes to the product offerings of all its three UK mortgage brands, LMC, Preferred and SPML.

SPML (Southern Pacific Mortgage Limited) has announced major changes to its range. Firstly, it has replaced income multiples with an affordability calculation. In addition, it has reduced its fixed rates, especially in the lower adverse sphere and also brought in the option for the borrower to choose a slightly higher arrangement fee and a lower rate or vice versa. It is also introducing a new two-year, near-prime fixed rate product with no early redemption charge from 5.69%.

SPML has also improved its buy-to-let offering by introducing a 90% buy-to-let product in its online range. The rental calculation has a sliding scale down to 100%. All available from www.Mortgage-Shop.co.uk.

Recently-acquired London Mortgage Company (LMC) has revamped its buy-to-let range, and now includes a 90% LTV product, which also starts at a 100% rental calculation. The two-year fixed rate has the option of not having an early redemption charge. The rates start at what it is a calling a “highly competitive” 5.94%.

The major change to LMC’s residential sub-prime range is that is it is now based on the number of CCJs and not their value, in order to be potentially more advantageous to possible customers. Rates start at 5.29%

LMC has also reintroduced its unlimited adverse product with a maximum LTV of 75%, citing popular demand and market feedback.

Finally, Preferred has changed its end dates to make its products more competitive. In addition, it has launched a fixed rate product range with no higher lending charge.

John Prust, director of sales and marketing, at Lehman Brothers’ UK Mortgage Capital Division, said he was delighted to announce the major changes to the three brands’ offerings. “This an exciting time for the group. The three Lehman brands have been reappraised and become much more competitive,” he said.

“We’ve had an excellent 2006 with healthy business levels. These changes are a response to market pressures and our desire to do even more mortgage lending in 2007.”