As a result of the almost daily changes and increases we have seen in some fixed rates and variable margins in 2012, Skipton has just made the following announcement:
"What strange and challenging times we operate in! It's not often a lender writes to it’s broker supporters to say we are doing too much business,but that’s exactly the reason why I need to inform you of a significant short term change to Skipton’s Intermediary, whole of market product range.
Last year thanks to your support we were one of the few lenders to exceed it's lending target. 2012 has started unbelievably well, with new business in January pushing 150% of forecast. Consequently, you will have seen that over the last couple of weeks we have tried to withdraw and re-price various products as a means of controlling volumes.
However,we still find ourselves taking too much business on a daily basis with our products still "flying off the shelves" across our current mortgage range. If we allow this to continue it will impact both on our service standards and existing pipeline business, which we are not prepared to allow. Therefore, after full and careful consideration we have decided to withdraw all our whole of market residential products from close of business today with no immediate replacements. This will give us the opportunity to redesign our residential product range and align ourselves with those areas of the market we want to fully participate in".
This is maybe represented in that when I compared a 2 year fixed rate available in September with Santander (Abbey) at 85% LTV, I witnessed a 2 Year Fixed rate that was 4.09% with a £495 Fee now available at 4.69% and a £995 Fee?
Tuesday, 14 February 2012
Wednesday, 8 February 2012
New restrictions from Santander (Abbey)
The following update has been received this morning and serves to further restrict interest only lending (most lenders currently do above 75% LTV), restrict borrowing capacity and a warning that might in the future restrict your ability to move house without penalty!
"On Friday 10th February, we are making some important changes to our lending criteria.
1. We constantly review our offering to ensure it best meets the needs of your clients and following a review of our interest criteria we have taken the decision to reduce our maximum LTV on our residential mortgages where any loan part is on an interest only basis to 50%.
2. At the same time, we are also reducing the maximum number of applicants from four to two. Any paper applications received after Monday 13th February, will be rejected.
In addition to the above changes, we have also clarified the following area in our lending guide:
ERC waivers for existing mortgage customers moving home
We’ve amended our customer and intermediary guides to make it clear we may withdraw this concession in the future. We are not withdrawing the concession at this time".
"On Friday 10th February, we are making some important changes to our lending criteria.
1. We constantly review our offering to ensure it best meets the needs of your clients and following a review of our interest criteria we have taken the decision to reduce our maximum LTV on our residential mortgages where any loan part is on an interest only basis to 50%.
2. At the same time, we are also reducing the maximum number of applicants from four to two. Any paper applications received after Monday 13th February, will be rejected.
In addition to the above changes, we have also clarified the following area in our lending guide:
ERC waivers for existing mortgage customers moving home
We’ve amended our customer and intermediary guides to make it clear we may withdraw this concession in the future. We are not withdrawing the concession at this time".
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