Specialist lender Vida Homeloans is withdrawing its second charge range due to fears of economic uncertainty in 2019.
The intermediary only lender launched a second charge pilot in January 2018 through two select packagers. Before withdrawal it had expanded its distribution to a preferred panel of five master brokers.
Guy Batchelor (pictured), sales and marketing director at Vida Homeloans, said: “Vida’s second mortgage operation was a pilot, designed to test our proposition and learn about the market with the help of a limited number of different types of intermediaries.
“We have undertaken a review and, with increasing uncertainty in the UK economy we believe that 2019 would be an inappropriate time to fully roll out our launch our seconds product both in terms of demand and funding.
“It is therefore with regret that we have decided to withdraw from the seconds market and bring an end to the pilot.”
On the product front Vida had been offering residential and buy-to-let second charge loans with rates from 4.80%.
Before withdrawal the resi range was available for borrowers with impaired and improving credit history as well as those with short work history.
Buy-to-let criteria included terms for any trading limited companies, HMOs, MUBs, portfolio landlords and new and retired landlords.
However Batchelor said that whilst Vida is leaving seconds for now it could return to the space in the future.
He added: “We will keep the proposition ‘dormant’ for future implementation when the economic environment is right.
“We would like to thank those intermediaries who have helped us through this pilot phase. This in no way affects our first charge mortgage propositions in buy-to-let and residential specialist sectors and we are excited to have a number of strategic improvements to roll out over the next 12 months.’’
On the first charge front the lender has recently expanded into Scotland with a range of residential and buy-to-let products.