You are here: Home - News -

Vida temporarily withdraws products to protect service levels

by:
  • 09/10/2020
  • 0
Vida temporarily withdraws products to protect service levels
Vida has temporarily withdrawn selected products and raised rates by up to 0.3 per cent on others to manage service levels one month after relaunching back into the market.

 

The lender pulled out of the mortgage market completely in March due to a lack of liquidity facilities available to non-bank lenders. 

Vida then returned to lending up to 85 per cent loan to value (LTV) in September and amended its criteria to align with payment holidays, furloughed borrowers and those who had received bounce back loans. 

It now says an “overwhelming response” to its return and “unprecedented demand” has resulted in the decision to withdraw products. 

The lender has retracted its two-year fixed mortgages for residential and buy-to-let borrowers at 80 and 85 per cent LTV as well as the five-year option at 80 per cent LTV. 

Its two-year fixed Help to Buy and right to buy products have also been pulled. 

The mortgages that have seen rate increases include the two-year fixed buy-to-let mortgages at 70 per cent LTV and 75 per cent LTV, which have gone up by 15 basis points (bps). 

Five-year fixes for buy-to-let borrowers at 70, 75 and 80 per cent LTV have also risen by 15bps. These changes will be applicable to the lender’s Vida 1 and Vida 2 borrowers. 

Across its residential range, five-year fixed products available to Vida 1, 2 and 3 borrowers have increased by 20bps at the 70, 75 and 80 per cent LTV tiers. 

The right to buy five-year fixed product has been increased by 20bps and the Help to Buy five-year fixed has gone up by 30bps. 

Decisions in principle for current rates must submitted by close of business on Monday 12 October. Applications, together with all relevant mandatory documents, must be uploaded by close of business on Thursday 15 October. 

Louisa Sedgwick (pictured), managing director mortgages at Vida, said: “Following our relaunch back into the intermediary market in September, we have received an overwhelming response from our intermediary partners and are seeing unprecedented application volumes.  

As a result, we are temporarily withdrawing a number of our products in order to protect our service to intermediaries and their customers.  

Sedgwick said the lender expected to have a smaller product range for a limited time while it processed its pipeline.  

We want to make sure that we maintain strong service standards whilst dealing with the incredibly strong application volumes we have received in recent weeks. 

As ever, we remain 100 per cent committed to intermediaries and will return as soon as possible with our full product offering, including loans up to 85 per cent LTV, she added. 

 

There are 0 Comment(s)

You may also be interested in

Read previous post:
UK economic growth in August disappoints despite Eat Out to Help Out boost

UK Gross Domestic Product (GDP) grew 2.1 per cent in August, marking the fourth consecutive monthly increase. But it is...

Close