View more on these topics

Mortgages Plc tightens lending criteria

Merrill Lynch-owned Mortgages Plc has confirmed it will be changing its lending criteria due to the volatility of the global capital markets.

The lender will be reducing its LTVs on its unlimited range from 80 per cent to 75 per cent. It will be reducing its heavy range LTVs from 85 per cent to 80 per cent.

Its sub-prime buy to let applications are now being limited to near prime plus, near prime, super light and light.

MPLC also says that borrowers in arrears with a non-conforming lender will only be accepted in future on near prime and super light.

Marketing director Ian Whittaker says: “The continued volatility of the global capital markets has led a number of specialist lenders to either tighten their lending criteria or withdraw products from the mortgage market entirely.

“Mortgages plc continues to be committed to the sub-prime mortgage market and is not withdrawing any products, but we are making adjustments to lending criteria to limit our exposure to higher risk categories of business, which we believe is prudent given current market circumstances.”

The changes will be effective from September 3.

Recommended

Give and take

One of the changes under the new Chancellor has been to announce the bringing forward of the pre-Budget report to October. In the last few years, it has been in early December.

Commerce Centre signs up two more partners

The Commerce Centre has set up strategic partnerships with Affirmative Finance and Crystal Software.The Thinc Group subsidiary, which acts as a portal for non-regulated lending products, is linking with Affirmative Finance to enable advisers to access its commercial and residential bridging lending.Crystal Software’s Momentum technology platform will be used to support The Commerce Centre’s services, […]

Sub-prime shutters are coming down

Tanya Powley looks at the sub-prime crisis unravelling in the US, with more firms joining the fallout and asks how UK firms will be affected

Critical danger in non-disclosure cash cases

Insurers paying a proportion of a critical-illness insurance claim in a case where a policyholder has not disclosed information could risk exposing themselves to compensation cases, warns Standard Life protection marketing manager Mick James.He says the proportions paid rarely reflect the true risk that non-disclosed information would have presented, which may prompt cons-umers to seek […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment