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Abbey looks to double mortgage lending

Abbey for Intermediaries is understood to be looking at plans to double its mortgage lending next year.

Brokers have been approached by the lender’s BDMs over the last week outlining plans to double its lending, with one broker, who did not wish to be named, being told it wanted to increase lending from £40m a day to somewhere in the region of £80m a day.

In order to achieve this, it is thought Abbey will look to relax some of its lending criteria, specifically the ‘historic adverse’ rule – which would have previously stopped those with minor credit blemishes from getting a mortgage with the lender – as well as treatment of unsecured debt in affordability calculations.

John Charcol senior technical director Ray Boulger says that in terms of changes to its lending criteria, it has gone further than any other lender.

He says: “Any adverse at all on your credit linel in the last six years is enough to get you knocked out. They may recognise they have gone too far down that road.

“In terms of treatment of debt, that is another area where, on other commitments, they treat savings as commitments and pension contributions too. There is a difference between commitments and regular payments. It would be very sensible if they are going to take that out of the affordability calculation.”

A spokeswoman for Abbey told Money Marketing’s sister title Mortgage Strategy that there were no current plans to make any changes.

She said: “We constantly review our lending criteria but are not making any changes at this time.

“We are committed to supporting the intermediary market with great products and service.”

Abbey’s parent Santander UK advanced £24.2bn to borrowers in 2010, falling to £23.7bn last year. In the first half of the year, the lender advanced £8.7bn to borrowers.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Whilst this is welcome news of the intent to increase lending I’m afraid that from past history they will not be able to adequately administer the increased business.
    We’ve all had experience of Abbey taking 20 minutes to answer the ‘phone in the past and taking 10 days to look at post—here we go again

  2. Jolly Green Giant 15th October 2012 at 11:23 am

    Why would anyone want to deal with an organisation that has such ridiculus lending policy eg Affordability calculator on their own web site confirms mortage would be ok but DIP system thows the application out for non afforability, even though the clients are already with Abbey(Santander) on the same level of mortgage. The reason give is that the % LTV is higher and therefore is outside their risk criteria.
    Also as John Lacy found the admin in awful.

  3. Dont hold your breath !

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