19 Feb, 2008
Tanya Powley - 19-Feb-2008
Mortgages has become the latest lender to withdraw its combined
mortgage and unsecured loan range.
This comes hot on the heels of Alliance & Leicester's
announcement that it would be withdrawing its Plus Mortgage range
at close of business today.
Godiva says its MOREgage range will be withdrawn from February 22.
Managing director Colin Franklin says:"These products have been a
useful addition to our portfolio and have performed well. During
2007 we saw a steady reduction in the demand and certainly the
number of applications we have accepted has reduced.
"MOREgage applications have reduced to a negligible level and
it is no longer cost effective to maintain the additional
underwriting processes for these higher loan to value loans."
Northern Rock was the first lender to enter this market with its
Together product. The product has come under fire recently by MPs
following the demise of Northern Rock, calling the product reckless
and demanding for it to be withdrawn.
In an email to brokers, A & L says that pipeline applications
and existing PlusMortgage borrowers will be unaffected and will
continue to be serviced as normal