FT.com – Borrowers Face Caps on Loans

Jane Croft, a Retail Banking Correspondent has a great article in the FT about the UK liquidity issues in the Home Loan sector.

A growing number of mortgage lenders are restricting home loans to customers outside certain geographic areas or are capping the maximum amounts homeowners can borrow at £350,000 as the credit squeeze intensifies.

Nationwide, one of the UK’s biggest lenders, has said that it will stop lending to first-time buyers who want to take out selfcertified mortgages where proof of income is not required. It is also stopping lending to all first-time buy-to-let landlords.

In addition Nationwide, which lends to these specialist segments through its two divisions Mortgage Works and UCB, is capping the maximum it will lend to any borrower taking out selfcertified mortgages to £350,000.

FT.com / Companies / Financial services – Borrowers face caps on loans