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MEX dumps 100%-plus deals

Mortgage Express has withdrawn its 100%-plus products.

The move follows its competitors pulling their supersize 125% LTV deals last month. Alliance & Leicester was the first to withdraw from the sector, swiftly followed by Coventry.

Abbey pulled its pilot scheme for a 100% mortgage combined with a £25,000 loan. Northern Rock and BM Solutions then scrapped their supersize products.

MEX is also withdrawing its standard full status range, its 90% LTV buy-to-let product and its 85% LTV two-year self-cert deal.

But it says it will retain its 85% LTV three-year self-cert product and honour all pipeline business.

Gus Park, director of intermediary sales at MEX, says: “With everyone pulling out of the 100%-plus LTV market, we can’t afford to be left out there alone. This is a strategic decision to do with managing the flow of business we receive.”

Meanwhile, Leicester-based mutual Earl Shilton has slashed the LTVs on its products to 50% due to excessive consumer demand. Its LTVs were previously 90% for introduced business and 95% for direct-to-consumer deals.

A spokeswoman for the mutual says that recent increases in demand have resulted in case processing taking up to a month, compared to its usual 10 days.

She says: “This is unacceptable. The problem is that when you’re a small society it’s all too easy to get a bad reputation, so we’d rather close the door to excess business now and reopen it in due course.”

The spokeswoman adds that she expects the reduction to have a minimal effect since around three-quarters of the mutual’s business involves sub-75% LTV products due to its higher lending charges.

Brokers generate about 45% of Earl Shilton’s mortgage business, which totalled £64.3m in the 12 months to March 2007.

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