Sub-prime mortgages stopped
8/08/2007
DB Mortgages have stopped its complete sub-prime product range
from the market sector. This is the first big indication
of a credit crush in the UK market subsequent the deepening US
sub-prime catastrophe.
Dudgeon explained it has broadcasted emails to packagers informing
that there will be a re-launch on its sub-prime products during
August. The lender is now dealing with near-prime mortgages and
buy-to-let.
Senior technical manager John Charcol explained that the US market
is certainly having a growing impact on backing the UK. “There’s
no doubt that any lender who relies on securitisation is going
to fine margins pressed even more tightly or they will start
to price products more expensively. There’s no way that
lenders like Edeus and GMAC will not be affected by this.”
A spokeswoman added: “National Guarantee represented a
very small strategic investment for GMAC-RFC. Like many business
to consumer lending models, National Guarantee was finding it
difficult to generate leads cost effectively in volume to make
the business viable and profitable.”
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