Articles Secured & Unsecured Loans Secured Loans Latest News 23/10/07
| Secured Loans Latest News 23/10/07 |
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Secured Loans Latest news23/10/2007 As a result of turbulent market conditions Paragon Personal Finance the secured loan arm of the Paragon Group has withdrawn its 115-125% Loan to Value product and has capped the max LTV at 115%. Paragon are the latest in a long line of lenders who are having product revision as a result of the rising interest rates and we expects the coming months to be a struggle with more lenders withdrawing products and tightening criteria at this turbulent time. This is more evidence of lenders taking a much more conservative view of things. The big lenders in the mortgage industry are tightening up their criteria, which have now filtered through to the secured loan second charge market. From a customers point of view it means that there is very little choice for them at a time when they need more choices. This only leaves two major lenders offering products in the 115-125% Loan to value brackets, which is First Plus Finance (which is part of Woolwich PLC) and Picture Finance and what with Picture currently withdrawn from the introducer market the options for the consumer on the higher equity secured loan looks bleak. Also with the news article from GE Money Home Lending this week which announced that it is to cap the loan to value at 90% for its second charge range of First National products which bring them in line with their Igroup products so now all their Secured loan products will be capped at 90%. Also with the recent credit crunch in America which has filter through to the British shores with the fall out being the withdrawal of quite a few secured loan lenders. First one that was affected was Southern Pacific Personal Loans part of US investment bank giant Leham Brothers which they closely followed up with the news they where going to be 1,200 redundancies to be made in the US. The next lender to inform the market that it was to cease trading on the Secured Loan side of the market was Kensington. The lender was responding decisively to the current volatility in the global market and will be withdrawing all its secured loan second charge plans until the markets stabilize. The next lender that was affected by the current unstable market was Morgan Stanley’s Second charge secured loan products ADV2. Which had agreements in place with master brokers Portfield financial, Norton Loans Etc and Enterprise Finance. This came as a surprise to the secured loan community as they have only been offering the plans for eight months and no one can see them returning back to the industry. |
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