Committed to the sub-prime market, the specialist lender held its rates for as long as possible, but with credit markets tightening, it has ultimately had to revise its product range. High Street Home Loans has, however, promised to honour the £250 million of existing pipeline business with its intermediary partners.
Maximum loan to value has been reduced from 95 per cent to 90 per cent, with rates now starting from 8.05 per cent. High Street Home Loans has also temporarily removed its unlimited adverse product, but will continue to offer heavy adverse with CCJs up to £10,000 and as many as five missed payments in the last 12 months.
Gary Forrest, director for High Street Home Loans, said: "We have taken this step as a result of the unprecedented circumstances within the world's mortgage market. This is a short-term measure, but as a responsible lender, it is important that we adopt a prudent approach to address the current challenges in the market.
“We are in this business for the long-term and value the excellent relationships we have with our intermediary partners, which is why we have committed to honour the massive amount of business we currently have in the pipeline. We fully expect the capital markets to return and when they do so, we will be in a strong position to offer an innovative product range for packagers, appropriately priced to reflect the risk.”
High Street Home Loans current product range will be withdrawn at 5pm on Friday 31st August. Packagers are able to reserve funds via the High Street Home Loans website until this cut-off point.
