GE Money Home Lending has taken the decision to cap its First National 1st mortgage range of products at 95 per cent LTV as a result of the turbulent market conditions.
It has also tightened its criteria over 90 per cent LTV and limit 2nd charge LTV to 90 per cent.
The changes will be effective from August 20 and apply to packaged cases submitted after September 7 for first mortgages and from August 24 for seconds.
GE Money Home Lending head of mortgage sales Duncan Berry says: “It is clearly a turbulent time in the market and we expect smaller lenders will find the coming months a struggle, with many lenders withdrawing products, reviewing pricing and tightening criteria.”
“For GE Money Home Lending being a balance sheet lender does have some benefits… we are not as directly exposed to current market conditions as some and have excellent visibility of the profile and performance of our portfolio.
Berry adds: “With a tightening housing market and affordability pressure building, we would expect other lenders to follow in reviewing their criteria to ensure they are lending prudently and, most importantly, that their products are designed to be suitable and affordable for customers.”