You are here: Home - News -

Vida pulls some products and warns other non-banks may follow

by:
  • 20/03/2020
  • 0
Vida pulls some products and warns other non-banks may follow
Vida Homeloans has temporarily withdrawn some of its products as it warned other non-bank lenders may have to follow suit.

 

It noted non-bank lenders were not protected by liquidity facilities provided by the Bank of England and HM Treasury, adding that the move was to protect the future of its business.

When the Bank of England cut interest rates to 0.25 per cent, it announced that the counter-cyclical capital buffer for banks would be lowered from one per cent to zero to allow lenders to hold less money in reserve and therefore boost lending.

Anth Mooney, CEO of Belmont Green Finance, which owns Vida, said: “As we are treated differently from the high street banks, we have taken swift and decisive action to protect our business. 

All other non-bank lenders are facing into similarly difficult choices right now, as they weigh the tough challenge of maintaining customer access against the imperative of securing a sustainable future for their people and business.

“This is an industry wide challenge, not one that we face alone. 

Mooney insisted the lender’s trading in 2020 so far was strong but said it acted early to “conserve liquidity”. 

 

Withdrawn offerings

As of close of business on Thursday 19 March, Vida Homeloans has withdrawn the one, two and three tiers within its buy-to-let and residential ranges.

It will continue to offer products on its buy-to-let four, residential four and five and residential Help to Buy four and five ranges.

Vida will continue to review its proposition and plans to re-open its full range for new customers when market conditions allow. 

Louisa Sedgwick (pictured), managing director mortgages of Vida Homeloans, added: “Vida is a prudent and responsible lender and we remain proactive and fully engaged in serving our customers and intermediary partners.  

We are working closely with the intermediary community, industry bodies like IMLA and UK Finance as well as with our close competitors, to ensure that as an industry we come together to do the very best we can to help customers at this difficult time.” 

 

There are 0 Comment(s)

You may also be interested in

Read previous post:
interest rates
Bank of England cancels stress tests

The Bank of England has cancelled its annual stress tests and reiterated that it will allow banks to drawdown on...

Close