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' 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' proof of residency on its second charge deals but now says it will go back to one.
Brian Pitt, Future's 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's 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's important to us that borrowers have their payments back on an even keel before they come to us. This will not change.”