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DB Mortgages to reduce range of near prime products

DB Mortgages is withdrawing its higher arrangment fee near prime +, near prime and super light products at the close of business today.

The higher arrangement fee options on its two year fixed rate and tracker purchase and remortgage deals, including the self-cert option, are being withdrawn.

It is also withdrawing its higher arrarrangement fee two year fixed and tracker near prime + and near prime buy to let products.

The group’s managing director Bill Dudgeon says the move follows several weeks of high take up of its higher arrangement fee options and stresses it has nothing to do with the recent market volatility.

All products will be still be available with a 0.5 per cent arrangement fee.

Savills Private Finance director Melanie Bien says this is a further example of tightening in the sub-prime market.

She says: “Most sub-prime lenders have started doing this, raising LTVs and rates, and making it harder for those with the most chequered credit histories to get on the housing ladder.

“As funding problems spill over into the mainstream market we expect to see more products withdrawn and priced upwards, both in sub-prime and prime.’

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