Close Brothers today confirms its mortgage arm does have a future, allaying fears the business would shut for good after it suspended all new applications earlier this week.
Chairman of Close Mortgages, Bob Golden, told IFAonline Close Brothers fully intends to return to the market "as soon as it becomes profitable to do so".
However, he says "that could be tomorrow or it could be in a year or more".
Close Mortgages announced on Monday it would be suspending all new applications for mortgage products.
Golden says current problems with world credit markets have made its mortgage proposition unprofitable, but says the lender will return when markets return to normal.
“We always said we’d never go into the sub-prime area and our focus has been on full status buy-to-let products," he says.
"However, recent problems in global markets have squeezed margins and they have become so tight that the business was moving towards being unprofitable.”
He adds: “We’ll re-enter the market when margins improve. Of course, with current market conditions that could be tomorrow or it could be in a year or more.”
Some sub-prime lenders have already been forced to withdraw product ranges as a result of cautious credit markets and Close Mortgages is one of the first specialist non sub-prime lenders to withdraw its product offering since the crisis began.
If you would like to comment on this story, contact:
Tel: 020 7034 2682
e-mail: [email protected]
'Right thing to do'
£69m spent on upgrades
European fintech market 'underserved'