Scarborough pulls plug on specialist lending arm

Scarborough has pulled the plug its specialist Leeds-based lending arm Scarborough Specialist Mortgages.

The decision follows market changes which have impacted mortgage origination and trading within the industry.

Existing SSM pipeline cases will be accepted and intermediaries have been notified of both the SSM product withdrawal and the cut-off point up to which applications will be accepted.

All existing SSM loans will continue to be administered by the Scarborough Group.

A small number of SSM-related roles are directly affected by the decision and those staff have been notified. A consultation process is now taking place.

Simon Evans, group relationship manager at Scarborough, says: “SSM has proved very successful since it was launched to originate high quality specialist mortgages.

“But we have to accept that the world has changed since last autumn and our business needs to respond accordingly.

“Given the much-reduced appetite for originating mortgage lending and trading mortgage assets, we have responded to market trends currently and as we expect them to unfold over the coming months.

“In the meantime, we remain committed to working with intermediaries to offer varied lending solutions through Scarborough Building Society.’

One source says: “Ever since the plug was pulled on Amber the worry has been that the others would start to fall like a deck of cards.

“With renewed FSA pressure it’s not going to be long before you see other
society specialist lenders go to the wall too.”