(PRWEB) September 27, 2007
Mortgages Plc has suspended all of its heavy and unlimited adverse products in its latest criteria change.
It has also announced that it will be reducing maximum loan to value on its medium adverse range from 85 per cent to 80 per cent. Its light adverse range maximum LTV will decrease to 85 per cent from 90 per cent, whilst its super light, near prime and near prime plus self cert ranges will see a reduction in LTV from 90 per cent to 85 per cent.
In its super light, near prime and near prime plus full status 90 per cent range, Mortgages Plc says it will increase rates between 0.6 to 0.7 per cent.
The above changes will be implemented with effect from September 26 and all applications on current products must be submitted by close of business on September 25.
Marketing director Ian Whittaker says: "We are continuously monitoring our competitors to ensure Mortgages Plc does not become isolated in any specific sectors of the adverse credit market. We have taken note of recent changes announced by other sub-prime lenders and have had to respond accordingly, in order to maintain the quality of our business."
There have been many recent predictions as to how companies such as Mortgages Plc will be affected in light of recent events, most notably the Northern Rock Crisis. With house price growth predicted to halve next year according to the Nationwide building society this may influence mortgage companies' strategic decisions on where to position themselves against their competitors. Interest rates are predicted to be cut by the Bank of England's Monetary Policy Commission which will also be a residing factor in any trend in the coming months.
On the flipside predictions are also been mounted on how consumers will behave and whether they will seek remortgage deals with many homeowners securing competitive fixed rate deals two years ago that will soon be maturing. However obtaining a good fixed rate remortgage may be hard to come by as the current economic climate is far from what it was 2 years previously. On the other hand if interest rates do fall in the coming months some may still see a fixed rate option as the best mortgage or remortgage option. Only time will tell in this interesting period for mortgage companies and homeowners alike, not to mention the British economy.