db changes lending criteria

By Ariane Buteux

16 Aug 2007

The changes will come into force this Monday, 20 August 2007, and relate to both their sub-prime products and the Light Buy-To-Let product.

They are as follows:

The withdrawal of self cert option;
First time buyers will no longer be accepted;
Second charges will no longer be accepted ;
No longer considering those who have missed payments in the last 3 months for all sub-prime schemes;
Extra Heavy - maximum CCJ limit of £20,000 introduced;
Extra Heavy – Arrears, - change "unlimited" to "5 in 12"

Mark Bergin, director of sales and marketing at db mortgages, said: “The sub-prime market has seen some lenders exit completely over the last few days. db mortgages remains committed to offering sub-prime products but it has been necessary for us to make adjustments to our lending criteria.

“Some of these changes are temporary and some other providers have already made changes to their criteria. Others are likely to follow. We expect there to be a market-wide re-positioning and re-pricing.

“The volatility in the global financial markets and the resulting tightening of liquidity over the past few months has impacted the marketplace. The changes that we are making to the products ensure we retain our presence in this market sector while taking into account the increased risk profile.”