Reduced choice for recently discharged bankrupts and those in IVA’s as MBS Lending withdraws from the bad credit mortgage market
A very niche area in the bad credit mortgage market was dealt a blow yesterday (29th January 2013) as MBS Lending, the specialist bad credit mortgage arm of Melton Mowbray Building Society withdrew it’s entire range from the market.
MBS Lending always had an extremely tight affordability assessment and the loan to value restrictions of 50-60% maximum lending always meant that very few applicants would fit the lenders criteria. The lender has released a statement confirming that it had filled its lending quota for the year in this area but didn’t rule out new funding becoming available before the end of 2013.
Whilst only a small player, this was one of the only avenues open to recently discharged bankrupts or those within or with a recently completed IVA and this leaves no choice of specialist lenders for borrowers in this position. Bizarrely there are no specialist lenders that will consider this type of borrower whereas some high street providers may consider an application subject to credit score.
Mosaic Mortgages are specialist advisers for bad credit mortgages and even if we are unable to assist you with a mortgage at present, we will offer advice as the best way to enable you to obtain a mortgage in the future. Contact us to discuss any of your mortgage advice needs and requirements.