Step One cuts lender fee and scraps max age limits

Step One is reducing its lender fee from 3% to 2%, increasing its maximum loan size, removing maximum age limits and introducing new adverse credit assessment rules.

The lender is also introducing 30-year loan terms, accepting AVMs up to 80% LTV, and introducing new solutions for situations when a first charge lender is unwilling to provide consent.

Other changes include shortening the period of time that missed payments are considered from 24 months to 12 months.

Michael Childress, Director and CEO of Step One, said:

“Our new products should broaden the appeal of Step One to the broker community and solidify our reputation as a reliable specialist lending partner who can deliver creative solutions which are built around each customer’s individual circumstances.”

Ryan McGrath, Chief Executive of The Loans Engine, said:

"Changes such as increased loan sizes, no maximum age limit and the new adverse credit assessment rules are welcome criteria changes to an already competitive proposition.    

"The new plans to accommodate situations where the first mortgage lender is unwilling to grant consent are a great addition to an area of the market which has been traditionally overlooked by most lenders."

Chris Meadows, Head of Sales at Fluent Money, added:

"The changes Step One have made, particularly around the assessment of adverse being reduced from 24 months to 12 months and reduced lender fees down to 2% from 3%, is great news for us and our customers.

"Step One Finance fits in well across our panel of lenders as they enable us to source more options, particularly at higher equity levels. All of the enhancements made are positive ones and we look forward to building our pipeline further."