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Platform hikes sub-prime rates by 1 per cent and tightens criteria

Platform has confirmed it will be increasing its non-conforming range by 1 per cent with maximum loan to values lowered to 90 per cent from 95 per cent.

It will also be increasing its prime range by an average of 0.40 per cent.

As revealed by Money Marketing online yesterday, the lender will be lowering maximum LTVs for first time buyers to 85 per cent from 95 per cent on all products.

For new build properties, maximum LTVs has been decreased to 85 per cent for houses (from 95 per cent) and 80 per cent for flats (previous limit 95 per cent).

The lender says that FTBs will no longer be accepted on buy to let or house plus (self certified BTL).

The changes also see light and medium adverse non-conforming BTL removed and it has introduced restrictions on maximum CCJs and arrears limits for heavy adverse.

Platform’s managing director David Tweedy says: “Due to ongoing activity within the global capital markets and the subsequent general concern felt by funding providers over credit, we have decided to make adjustments to our lending criteria and pricing. As a responsible lender with ten years experience in the marketplace, we feel that a prudent approach to lending is all the more important in times of uncertainty.

“As an organisation that is taking a long term and committed approach to the intermediary market, we believe that Platform is in a good position to take advantage of opportunities that present themselves over the coming weeks and months to further develop our customer proposition.”

The last few weeks have seen GMAC-RFC, MPLC and DB Mortgages all tighten their lending criteria.

It is expected that SPML will also make changes to its sub-prime range following Preferred’s announcement yesterday that it will be increasing rates by 0.65 per cent from September 10.

More to follow.

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