Wave, the specialist lending arm of Merrill Lynch, will make a number of changes to its mortgage range from tomorrow, 2 October.
The firm is the latest specialist lender to tighten its lending criteria following the start of problems in world credit markets.
Wave is to reduce LTV on all buy-to-let products from 90% to 85%, has reduced LTV from 85% to 75% on new build flats and from 90% to 85% on new build houses.
The maximum amount Wave can lend is to be reduced from £1m to £500,000 across all residential and buy-to-let products.
Richard Spinks, director of credit & product development at Wave, explains: “All specialist lenders are monitoring the market very carefully and are making adjustments to their product ranges in order to control both new business volumes and credit quality. Wave is no exception, with these changes being necessary until greater stability has been restored to the market.”
Wave says decision in principle will be accepted on all current products and criteria until the end of today. Where a decision in principle is received, the cut off dates for applications are 5 October for direct applications and 12 October for packaged applications.
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