DB mortgages is withdrawing the self-cert option and will not longer accept first time buyers on its sub-prime mortgages from August 20.
The UK specialist mortgage lender of Deutsche Bank has today announced changes to the lending criteria of its sub-prime and light buy-to-let products which include withdrawing the self-cert option.
First time buyers will no longer be accepted, second charges will no longer be accepted and the provider will no longer consider those who have missed payments in the last three months for all sub-prime schemes.
DB mortgages director of sales and marketing Mark Bergin says: “The sub-prime market has seen some lenders exit completely over the last few days. db mortgages remains committed to offering sub-prime products but it has been necessary for us to make adjustments to our lending criteria.
“Some of these changes are temporary and some other providers have already made changes to their criteria. Others are likely to follow. We expect there to be a market-wide re-positioning and repricing.
“The volatility in the global financial markets and the resulting tightening of liquidity over the past few months has impacted the marketplace. The changes that we are making to the products ensure we retain our presence in this market sector while taking into account the increased risk profile.”