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BMS acts to limit self-cert lending

The specialist lender has replaced the flat arrangement fee of £399 with a fee of 1% of the total loan, making it more expensive than competitors like Mortgage Express which has set its fee at £375.

But BM Solutions&#39 director of mortgages Michael Bolton says this move was essential. He says: “If we hadn&#39t slowed down our lending in this sector we would have done over £10bn of self-cert by the end of the year.

“Putting the brakes on now means we put a sensible limit on our market share. If there were more credible competitors in the market, this wouldn&#39t be such a problem.”

BM Solutions says the change is a short-term measure to get business back to where it wants it and says it will return to the market with a bang within months.

Square Mile Mortgage Finance managing director Andy Wilgoss says: “If this is short-term, we can live with it. I don&#39t think it will affect BMS&#39s relationship with the brokers who are used to dealing with it.”

He adds: “It will be interesting to see whether this becomes part of BMS&#39s strategy when it needs to control volumes by turning the tap on and off.”

Tim Sturley, head of business development at Mortgage Express, says: “By changing the arrangement fee in this way, BM Solutions seems to be sending a clear message to the market which will probably reduce the volume of its self-cert business substantially.

“Mortgage Express remains committed to this market and will continue to offer competitive fees.”

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