I write in response to the article headlined, Crunch time for sub-prime sector, published on August 9 and the various follow-up articles published online. I would like to take the opportunity to set the record straight on a number of points.
db mortgages is committed to the UK mortgage market. We are not, as alluded to in the above article, withdrawing from the sub-prime sector.
Sub-prime mortgage origination remains an integral part of our business. In common with other lenders, we regularly review our pricing, taking into account factors such as movements in the money markets and our assessment of risk.
On July 31, db mortgages gave notice to our distributor partners that we would be temporarily withdrawing our sub-prime products from the market in order to reprice and relaunch them.
At the time of that statement, and in subsequent conversations with Money Marketing, we provided clear guidance regarding the fact that our newly priced products would be reintroduced in middle to late August. Your stories stated that we did not have a timeline for relaunch. At this time, I can confirm that the relaunch is planned for August 20.
Our parent company, Deutsche Bank, was also referenced in the same article with a suggestion that the bank is “reviewing its sub-prime exposure”. The bank was not given the opportunity to respond to these comments. The bank has asked me to confirm that its business has not changed and it continues to provide investors with services across debt markets.
Finally, the article headlined, db mortgages to withdraw remaining products this week, published on August 13 on Money Marketing’s website, neglects to mention that these products will be withdrawn on August 17 and will be repriced and reintroduced on August 20. Again, these details were clearly stated in the communication to our distributor partners.
Our business continues as it has since we launched over a year ago. We have already written over £1bn in new business and will continue to provide a competitive offering through our distributors.
Managing director, db mortgages