Infinity Mortgages has announced today that it has postponed the launch of a new range of mortgage products due to the widening cost of debt in the capital markets.
The company originally pulled its sub-prime product range on 17 August in the wake of tighter credit conditions after the sub-prime crisis in the US.
A statement released by Infinity today says the company will not be launching its new product range and has suspended offer production.
Securitisation for all offered cases has been acquired but borrowers should be aware there may not be a substitute Infinity product available when the term ends. The firm says it cannot commit to funding applications that have not been offered.
The statement says: “In the light of the above, to minimize the impact to you and your customers on cases submitted to us, Infinity has secured products with other providers. Your business development manager will be able to advise on the closest match product that we have available.”
Problems with sub-prime lenders in the United States have caused financial market instability across the world and more than 30 US lenders are thought to have gone bust as a result of the crisis.
UK mortgage lenders have become worried by the US trend and many have pulled their riskier products such a sub-prime mortgages from the market.
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