Lenders withdraw some high LTV products following Brexit
Lenders are withdrawing some of their high loan-to-value products as experts project a fall in house prices following the decision to leave the European Union.
The result of the EU Referendum on Friday saw both Kensington and Fleet withdraw some of their higher LTV products as they look to protect borrowers from market volatility.
Bob Young, chief executive of Fleet Mortgages, said the move was to ensure the safety of borrowers.
He said: “As a prudent lender we want to understand the fallout from Brexit and don’t want to encourage borrowers to borrow too much in what could be a falling property market.
“Whilst I don’t believe we will see huge falls in property prices, the underlying demographics are far too strong nonetheless we believe in being prudent.
“Going forward we’ve a range of exciting ‘improvements’ to our range aimed at the semi-professional / professional market which we are in the process of introducing.”
And the lender has seen a boost in applications following the decision to leave the EU. On Friday Fleet saw its busiest day ever for new mortgage applications with roughly four times its usual number. This was double its previous best day during the SDLT spike.
Kensington withdrew its limited tranche of 90% LTV exlusive at the same time.
A spokesperson for the lender said: “We have withdrawn our limited tranche 90% LTV exclusive product and are working on new products that we hope to launch into the market soon.”