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SPML raises rates and slashes LTVs

SPML has followed Preferred and made further criteria changes to its mortgage range as well as raising rates by a further 0.75 per cent.

This comes after both Preferred and Amber Homeloans tightened their lending criteria this week.

SPML has told packagers that its medium and heavy products will only be available up to a maximum 75 per cent loan to value while light adverse will be capped at 80 per cent LTV.

Almost-prime through to minor will be available up to a maximum of 85 per cent.

SPML also says that fast track will be available only for status and purchase to a maximum of 75 per cent LTV.

The firm says that due to rapid changes in the perceived risk, value, and associated costs of mortgages, it has been necessary to increase rates by an average of 0.75 per cent.

It has also made a number of criteria changes which will be implemented from this week.

It says that any offers made will be valid for up to two months and will be reviewed again on the new product range if not completed within this time period.

Self-cert is now available to self-employed only. There is a maximum LTV of 75 per cent on all flats and newbuild properties.

All arrears on secured loans and mortgages, including buy to let. will be taken into consideration for product selection and it will no longer lend to bankrupts or people with IVAs in the last six years. Proof of last three months’ contractual mortgage payments if remortgaging from a sub-prime lender on medium, heavy and fast track.

SPML says that pipeline cases on the old product ranges will need to be fully packaged by close of business on October 5 and offered no later than October 19.

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