10 Mar, 2008
Scarborough has pulled the plug its
specialist Leeds-based lending arm Scarborough Specialist
The decision follows market changes which have impacted mortgage
origination and trading within the industry.
Existing SSM pipeline cases will be accepted and intermediaries
have been notified of both the SSM product withdrawal and the
cut-off point up to which applications will be accepted.
All existing SSM loans will continue to be administered by the
A small number of SSM-related roles are directly affected by the
decision and those staff have been notified. A consultation process
is now taking place.
Simon Evans, group relationship manager at Scarborough, says:
"SSM has proved very successful since it was launched to
originate high quality specialist mortgages.
"But we have to accept that the world has changed since last
autumn and our business needs to respond accordingly.
"Given the much-reduced appetite for originating mortgage
lending and trading mortgage assets, we have responded to market
trends currently and as we expect them to unfold over the coming
"In the meantime, we remain committed to working with
intermediaries to offer varied lending solutions through
Scarborough Building Society.'
One source says: "Ever since the plug was pulled on Amber the worry
has been that the others would start to fall like a deck of cards.
"With renewed FSA pressure it's not going to be long before
you see other
society specialist lenders go to the wall too."