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Portman ponders Sun Bank self-cert

Portman Building Society is reviewing subsidiary Sun Bank&#39s non-status self-certification mortgage, which could leave GMAC-RFC the only player in the market.

Portman says it feels uncomfortable being one of only two lenders offering the product which does not require an income to be stated.

GMAC-RFC, which is the only other lender with a similar product in the market, has no plans for change.

Chief executive Robert Sharpe underlines the fact that he is happy with the business that Sun Bank is getting from the product but says that, with only two lenders offering it, he is concerned that Sun Bank could get a flood of business and its product balance would suffer.

He says the result of the review could be to put a limit on the product but Money Marketing understands that the product could end up being withdrawn.

Sharpe says: “We are a very prudent lender and I think that we have all the necessary checks in place. But we are one of only two lenders offering this product and so we could end up getting overweighted with this type of business.”

Hargreaves Lansdown head of mortgages Ian Jordan says: “If Sun Bank decides to put a limit on this then it is a sensible business decision. It would not surprise me if GMAC takes a look at their product too as they might start to feel uncomfortable if they are the only one left in the market.”

GMAC head of marketing services Jeff Knight says: “We have no plans to change our product. We have a very different business proposition to the Portman and a robust credit-scoring system that people cannot misuse.”


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