Mortgages Plc has made changes to its lending criteria following similar moves by other sub-prime mortgage lenders.
The company says it will not withdraw any of its products, as some lenders have done, but is limiting its exposure to ‘higher risk categories of business’ by tightening lending criteria.
Ian Whittaker, marketing director of Mortgages Plc, says: "The continued volatility of the global capital markets has led a number of specialist lenders to either tighten their lending criteria or withdraw products from the mortgage market entirely. Mortgages plc continues to be committed to the sub-prime mortgage market and is not withdrawing any products”.
The lender has reduce loan to value ratios on two products, the Unlimited range has seen a reduction from 80% to 75% while the Heavy range has been lowered from 85% to 80%.
The buy-to-let sub-prime range has been limited to customers who fall into the near prime and light categories. Borrowers in arrears with non-conforming lenders will only be accepted in near prime and light categories. The changes will take place on 3 September.
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