Leeds and Holbeck Effective Withdrawl From Spanish Mortgage Market

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Yesterday afternoon with no prior notice or indication Leeds and Holbeck in all but name withdrew themselves from the Spanish mortgage market.

Drastic changes to criteria have put Leeds and Holbeck products completely out of the market.

Ages have been reduced from maximum age 80 years to age 65 years.
All interest only facilities have been withdrawn.
Income multipliers have been slashed and further restrictions placed on what type of property they will lend on.

Of great concern to most brokers will be the lack of communication prior to change and the decision to not just change product but to do so as of yesterday when communication only came out late yesterday afternoon.

All brokers have been given until Friday if they have an approval in principle to get a fully packaged case to Leeds or approval is lost.  A challenge in itself; any cases where the society has not given an approval are affected immediately.

In their communication, they completely ignored the situation they may have put brokers and clients in. No apology for the necessity of the change and no regard or apology for the inconvenience (to say the least) they may have caused those business and clients who have supported them.

One can only assume from the action taken serious issues are afoot for Leeds and Holbeck as any mutual building society dedicated; as they claim to be to service; would not make these changes immediately without giving time for pending applications to be sorted unless things were dire.

It is either there are real problems here or their claim to quality service for all is in fact just lip service and their ability to communicate effectively with third parties non-existent.

“Just another example of banks disregard for clients and businesses or testing times ahead for one of the few UK mutuals left. Time will tell.”

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