View more on these topics

Future does a U-turn on lending rules

Future Mortgages has reversed changes to its second charge lending criteria after brokers and packagers began to query the new rules introduced by the sub-prime lender.

A director of one packager told Mortgage Strategy: “Future is asking us for two years&#39 proof of residency on second charge deals even if the customer is on the electoral roll. Criteria changes in the last two months are making it difficult to deal with.”

Future had brought in new measures requiring two years&#39 proof of residency on its second charge deals but now says it will go back to one.

Brian Pitt, Future&#39s sales and marketing director, says: “Initially we may have gone over the top regarding our second charge deals. We have now reviewed this requirement and have decided to go back to one year&#39s proof of residency. The changes we implemented were as a result of us taking regulation seriously and we are not going to jeopardise our known market position of conducting a fully compliant business.”

Future has also tightened its criteria on sub-prime to subprime remortgage deals on its unlimited arrears product where there are arrears in the last 12 months.

Pitt adds: “This is about being prudent. It&#39s important to us that borrowers have their payments back on an even keel before they come to us. This will not change.”


Tell their Lordships what you think of regulation

From Brian LentzI am writing to urge brokers and IFAs to express their views on forthcoming regulation of mortgages and other financial services to the House of Lords. The Lord&#39s Constitutional Committee is currently reviewing the constitutional implications of all proposed legislation, as well as that which underpins government bodies such as the FSA. The […]

Everyone wants a piece of the action

Think of it what you will, sub-prime business is still booming. Just weeks after Datamonitor reports that the size of the non-standard market has decreased to one in five of the population, Mortgage Strategy can confirm that Lloyds TSB is to make its mark on the market through its retail branch network. We revealed back […]

Consumers log on to CA website on endowment mis-selling

Almost 400,000 consumers have gone on to the Consumers&#39 Association&#39s since its launch four months ago. The website offers information on mortgage endowment mis-selling and how to get compensation, and 28,000 people have used the letter generator to draft a complaint. The CA has launched a new questionnaire on its website today to assess […]

Little change in small business banking

Competition Commission recommendations on banking for small businesses have made very little difference to small business owners, says Moneyfacts. In October 2002 Business Moneyfacts devised three “hypothetical businesses” in order to demonstrate the probably levels of charges for different kinds of business. The experiment was repeated this month to see if the expected sweeping reductions […]

Creating opportunity out of change

By Denise Wond, marketing manager The buy-to-let market has recently been the subject of a raft of tax changes, all of which make it a less profitable and less appealing proposition for investors. In response, we’ve seen a dip in demand for BTL mortgages and that’s bad news for many advisers who will now be looking […]


News and expert analysis straight to your inbox

Sign up