One of the UK’s biggest sub prime mortgage lenders - Kensington Mortgages, has announced that it has had to temporarily withdraw its entire range of sub prime mortgage products.
This also involves withdrawing other types of non-conventional mortgages such as self-certification, and buy to let mortgages.
The company explained its decision saying:
“As a result of the recent further tightening in the global capital markets, Kensington is increasing its focus on lower risk products by temporarily withdrawing its Adverse range until market conditions improve.”
Basically, financial institutions are very cautious about taking on any sub-prime debt. The rate of default in the UK, is relatively low. But, in the current climate it is very difficult to get the necessary finance. Kensington Mortgages admit that there is little hope for the global credit crunch easing in the next few months.
Kensington Mortgages have reduced their profit forecasts for this year and next.
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[...] Global credit crunch leading to less mortgages being made available e.g. Kensington Mortgages withdrawing sub prime mortgages [...]
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