14 Mar, 2008
Shilton, the Leicester-based mutual, has slashed the LTV on all its
products to 50% due to over-demand.
It was previously 90% for introduced business and 95% for direct.
A spokeswoman for the mutual says that the recent increase in
demand has resulted in case processing taking up to a month instead
of its usual 10-day turnaround.
She says: "This isn't acceptable."
She adds: "The problem is that when you're a small society
you can easily get a bad reputation, so we'd rather slightly
close the door to business now and reopen it in due course."
But she says that she expects the reduction to have a minimal
effect since around 75% of the mutual's business is below 75%
LTV due to its higher lending charge.
Intermediaries generate 45% of Earl Shilton's mortgage
business, which totalled £64.3bn for the 12 months to March