View more on these topics

State Bank of India halts new mortgage lending

India flags south asia umbrellas 440

State Bank of India has indefinitely stopped accepting new mortgage business in the UK after being overwhelmed with applications.

SBI launched a buy-to-let range in the UK mortgage market in September 2011.

The bank says it expects to begin offering buy-to-let deals again shortly, but a source says lending is likely to be halted for a minimum of four months.

Earlier this month, the bank revealed it hoped to launch more buy-to-let products up to 65 per cent LTV for interest-only and 70 per cent LTV for repayment deals.

It had planned to launch into the residential mortgage market via brokers in August this year but the move has also been indefinitely delayed.

A State Bank of India UK spokeswoman says: “We currently have a large number of applications in our pipeline and are reviewing and enhancing our offering and internal processes, and therefore are processing existing applications only.”

Largemortgageloans.com director Ian Gray says: “I am surprised as last month the bank was expanding its lending. This will create a hole in the market because it was very good at large buy-to-let loans and would accept applications from companies.”

Recommended

SRA probes conveyance firms over fraud risk

The Solicitors Regulation Authority is conducting a review of the current practices of conveyancing firms to reduce the risk of mortgage fraud. Following the review, which is due to run until the end of 2013, the regulator will update its draft supervision and enforcement strategy for conveyancing, a first draft of which was originally published […]

Kevin Carr

Insurancereview – September 2012

According to a range of statistics cancer represents around two thirds of all critical illness claims. It is also widely considered to be the main reason why most people consider buying cover. In fact, thereare more than 200 different types of cancer, each with different causes, symptoms and treatments.

Abbey’s new products are a hit with brokers

Abbey for Intermediaries on Friday reported a 33 per cent spike in business since the launch of its new range the previous week. The intermediary lender for Santander UK says the increase in new business has been driven in particular by strong demand for its two-year 2.79 per cent deal for all key accounts. The […]

Oakwood adds £150m mortgage portfolio

Oakwood Global Finance has added a £150m portfolio of non-performing residential loans to its books which it is servicing on behalf of an unnamed client. The new portfolio represents the tenth book taken on by the independent residential mortgage special servicers since January 2010 and takes the group’s total assets under management to £2.5bn over […]

Newsletter

News and expert analysis straight to your inbox

Sign up