Victoria Mortgages raise rates
Victoria Mortgages, towards the start of the month withdrew
all of its sub-prime mortgage products to elevate
its rates by 2.5 per cent. This is known to be the highest increase
by a UK lender since the capital markets bowed.
On 3rd August the lender decided to withdraw parts of its products,
and were not looking to introduce their new products until the
start of September. This shows us that the lender has left the
market for one whole month.
On the other hand, Mortgages Plc is raising its fixed rates by
1 per cent, leaving Edeus to increase its interest rates up by
a standard 0.35 per cent.
Hilgren commented: “The market is effectively closed at
the moment. We are pricing our products where we know we can
get the products off comfortably and get a good return when we
securitise them. Other lenders are pricing up bit by bit and
hoping they find the right level. We would prefer to price at
the right level, and then bring the rates down when the capital
markets pull through.”
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