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Fleet halts lending but promises new funding line by January-end

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  • 08/01/2019
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Fleet halts lending but promises new funding line by January-end
Fleet Mortgages has been forced to withdraw its current range of mortgages after fulfilling its funding line.

 

However, the lender told Specialist Lending Solutions that it expects to have a new funding line and product range in place shortly.

A spokesman said: “Fleet anticipates the new funding line will be arranged, and therefore the new product range will be launched, before the end of January.”

In a note to brokers, the lender said demand had exceeded its lending expectations and so it was withdrawing its buy-to-let product range.

“We have recently completed £400m of mortgage loans with one of the world’s largest asset managers,” the statement said.

“Due to the launch of our new products in December this tranche of funding was filled much quicker than we initially anticipated.

“We have therefore had to pull the current product range while we wait for the next funding line to be made available. We will keep you fully informed as to when the new product range will be launched.

 

Far from ideal

Brightstar chief executive officer Rob Jupp said while it was an inconvenience, he did not feel the lender’s reputation would be damaged if the break was short.

“Fleet’s funding model relies on securitisation and the conditions for securitisation are as rough as they have been in the last few years which is all down to uncertainty around Brexit,” he said.

“It seems to be a protracted period between the end of one funding line and the beginning of another, which is far from ideal.

“They haven’t said they won’t handle the pipeline, they are doing that and sometimes that isn’t possible.

“So I really don’t think there will be a huge issue if they come back quickly,” he added.

 

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