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Halifax exits self-build mortgage market

Halifax exits self-build mortgage market

Category: Mortgages

Updated: 22/01/2013
First Published: 22/01/2013

MONEYFACTS ARCHIVE
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One of the UK's biggest mortgage lenders, Halifax, has announced it is to withdraw from the self-build mortgage market due to a fall in demand from borrowers.

Self-build mortgages, will continue to be offered by Lloyds Banking Group through its BM Solutions brand, via brokers only.

Regarded as a niche area of the mortgage sector, self-build mortgages have made a gradual return to the market since the peak of the financial crisis, with twenty-eight lenders currently offering such deals, compared with twenty-two in January 2010.

The news follows Halifax's announcement last week that it would be closing up to 170 of its branches across the UK, resulting in a large number of job losses. The move is believed to be part of an ongoing cost-cutting programme by the bank.

A spokeswoman for Lloyds Banking Group said: "The requirements for self-build/building lending can be complex; therefore we have decided to streamline and focus our approach in this sector.

"This will not impact on the amount of self-build lending we do across the group, but managing it through one brand will allow us to offer a more focused proposition."

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