Following the launch of its new product proposition in July, Future Mortgages has taken the decision to temporarily restrict its lending to 90 per cent LTV on all new secured loan applications.
Since the launch of the new products and online decisioning technology, Future Mortgages has seen unprecedented demand for its products. This situation was intensified by the recent withdrawal of some lenders from the market.
Of the new cases received since July, more than expected were high LTV and, given the current situation in both the housing and capital markets, it was felt that this was the prudent thing to do.
Future Mortgages’ other product features will remain the same and there will be no changes to its underwriting criteria.
Ian Warrilow, head of secured lending, commented: “This decision has been taken as a response to a heavily-skewed business mix towards HLTV products and, given the current fallout from the US sub-prime credit crisis, we feel that, as a responsible lender, this is the right thing to do at this time. We remain fully committed to the secured loans sector and will continue to develop products and technology solutions to meet the needs of the market.”
