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The Mortgage Works pulls 100 per cent loans

The Mortgage Works has become the latest lender to withdraw from the 100 per cent loan to value market.

The lender has also taken the decision to cap self cert loans and buy to let at 75 per cent LTV.

In an email to brokers, TMW says: “We have recently been experiencing unprecedented demand for our products. However, as a prudent institution we have to control the volume of business we are writing at any given time, and therefore we have taken the decision to discriminate further in favour of lower risk business. As a result we have made the following changes to our product range with effect from Friday 21 March 2008.”

First time buyers will no longer be accepted on its self cert range. It will have a maximum loan at £350k.

On BTL, first-time landlords will no longer be accepted and BTL POS-O is no longer available. It says that non-status rental income is also no longer available and maximum loan per property is now £350k.

TMW says that with effect from March 21, aggregate loans per applicant in excess of £1m will be assessed on a case by case basis. But it says that portfolios held with TMW prior to this date are not affected.

TMW says that DIPs must be submitted online by 2pm on Thursday 20 March 2008 and the corresponding application is completed online by 8pm on Thursday 20 March 2008.

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