Specialist lender to stay in sub-prime mortgage market

Specialist lending firm DB Mortgages has denied that it is withdrawing from the sub-prime mortgage market.

It was confirmed last week that the lender, which is a subsidiary of Deutsche Bank, was removing its sub-prime range from the market, but the firm has stressed that this is only a temporary move for re-pricing purposes.

Matthew Russell, DB Mortgages' communications and sales support manager, said that the lender had to re-price its range in order to stay in line with competitors, FT Adviser reports.

"We have had our pricing up there for some time now and other lenders have moved on but we haven't," Mr Russell said.

"We will be re-pricing our products and it is likely we will have our re-priced products back in the sub- prime sector by the end of the month. So it isn't, as has been speculated, a total withdrawal from the sub-prime sector at all."

A spokeswoman for Deutsche Bank also confirmed the state of affairs, stressing that the company will continue to be active in the sub-prime mortgage market.

"This is simply a case of repricing and we will relaunch the sub-prime policies in August," she told FT Adviser.

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