Future Mortgages reviews 125% LTV offering
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Future Mortgages says it is waiting to see if LIBOR rates increase further before embarking on new product ranges.
The Citi-owned lender was planning to launch a 125% LTV offering in the secured loan market in the next few months.
However, Ian Warrilow, head of secured lending at Future, says it will now be reviewing the situation, because of current market conditions.
He says: “Nothing will change on our current product range. We are going to review any pilot schemes that we have planned.
"We were looking to make a number of enhancements to our range, including offering 125% LTV, and this may well still happen.
"But we will be waiting until September to see current LIBOR rates before we make a decision.”
Steve Teague, managing director of master broker Click, says 125% LTV products are always attractive, but dependent on market conditions.
He says: “Offering 125% LTV is something that differentiates you in the secured loan market. It’s a very different product, and if it fits the client’s circumstances it can be very popular.
"There is a lot of change taking place in the secured loan market at the moment, but with this also comes opportunity. People still want to borrow money, it just might change which firm they actually borrow it from though.”
Paragon Personal Finance recently took the decision to withdraw its 125% LTV range, capping the range at 115%.
