Nemo lower rates to new low and increase max loan size

Last post: Jan 7, 2013

The new year has barely started but Nemo, the secured loan lender owned by the Principality Building Society that has products aimed at the prime end of the secured loan market, has thrown down the gauntlet with two bold moves in both decreasing its lending rates and increasing the sizes of loans as well as LTVs it is prepared to do.

The new year has barely started but Nemo, the secured loan lender owned by the Principality Building Society that has products aimed at the prime end of the secured loan market, has thrown down the gauntlet with two bold moves in both decreasing its lending rates and increasing the sizes of loans as well as LTVs it is prepared to do. Effective immediately these are the changes that have been made:

  • A new interest rate of 5.59% - the lowest by a good margin that is currently available in the UK - has been launched
  • LTVs up to 90% will now be considered (although the maximum loan size at this LTV is £60,000 this is still the highest
  • A new maximum loan size of £200,000 is now available, up from previously £100,000. This allows Nemo catch up with Shawbrook Bank who made this move last year.

As mentioned, these rates and changes are mainly aimed at full-time employed prime borrowers. They have also made changes to their offering for self-employed applicants:

  • Max loan size is now also £200,000
  • Best interest rates are now 6.7% (previously 11.4% APR)
  • The criteria for how they define "self-employed" has changed from owning 25% of the company's shares to now 35%

One interesting feature too that is worth mentioning is that Nemo have limited supply of these new loans to just 4 of the major brokers in the UK. Have no fear though, Choice Loans have access to these funds should and of our customers require such a loan. This move highlights two of the trends that have been growing in the secured loan market in recent times: firstly, there is increased competition. Whether it is at the prime end of the market where Nemo operate or at the more distressed end, we've seen lenders willing to offer higher loan amounts at higher LTVs at better rates with more flexible terms. There is no doubt the secured loan market is thriving and this is only to the benefit of UK borrowers. The second noticeable trend highlighted in this move is that supply is limited to 4 brokers. Being connected to the right people is becoming ever more important and this segregation of the market seems to be mirroring how the mortgage market went some years ago with increased fragmentation meaning exclusive deals are available through different brokers meaning to get a full picture of what is available, a broker needs to have relationships not just with multiple lenders but also with multiple other brokers - just like we have here at Choice Loans. If you are interested in raising a secured loan on your property then we can help. Please either call us on 0845 1260350 or complete our secured loan enquiry form here and we will get in touch.


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