The Mortgage Business and Bristol & West have both denied that the withdrawal of their 90% LTV self-cert products is a result of the media furore surrounding the market.
Brokers see the move as a clear sign of lenders reacting to accusations of mis-selling levelled at the market in The Money Programme.
But TMB tells Mortgage Strategy the withdrawal is just a sign of the company managing its risk profile and that price changes alone were considered insufficient to control it.
Mark Bergin, TMB director of sales and marketing, says: “The timing will cause people to leap to the wrong conclusion. Business is up for the year but Self-Cert 90 has gone that little bit further. To keep a balance we decided to ease up. We expect to be back out with a self-cert product early next year.”
Bristol & West says the change is a result of it having used up money set aside for self-cert lending in the 85% to 90% LTV bracket.
Neena Kithoray, senior product manager, says: “It's a coincidence. We've just run out of money.”
But Nick Harris, associate at London-based Square Mile Mortgage Finance, says the withdrawal by B&W and TMB was unsurprising.
He says: ” With all the media exposure lenders are looking carefully at what they are doing. I expect to see more reviews like these.”