Beacon Homeloans withdraw from new lending

luckyfool

Beacon to stop new mortgage lending

It looks like cases that are not in the offer queue and ready to offer by today are going to be out of luck. It seems that cases where there is already an offer in place will be honoured, but I suspect that these offers will not be renewed.

mortgageseeker_2

Hi Lucky fool what do you mean ready to offer today ?

and you say where there is an offer in place will be honoured but you suspect these offers will not be renewed ?

I had an offer and a completion date for yesterday but beacon wanted another audit valuation and we moved the date to next week, what does this mean for us ??

thank you

mortgageseeker

Leon_W

This is all I have

Dear Brokers
I regret to advise you that following receipt of the attached communication we will not be accepting any more decision in principles or applications for Beacon Homeloans until further notice. All cases that have been submitted for offer have until 27th November to receive a formal offer and any offered cases must be completed by 25th February 2010. For cases that have not had a valuation carried out we will be refunding the fees and returning the paperwork over the course of the next week.
"Beacon Homeloans ("Beacon"), currently one of the top twenty lenders in the UK, is seeking additional finance to facilitate further strong lending in 2010.
The current mortgage asset purchase arrangements, which have enabled Beacon to lend circa £2billion since its inception in 2005, will come to a natural conclusion at the end of February 2010.
Between now and February 2010, in close liaison with the FSA, Beacon will be carefully managing the conclusion of its asset purchase arrangements, and to assist customers to whom mortgage offers have been made in completing their loans within the stated validity of their individual mortgage offer. To ensure that this is achieved, and in line with regulatory requirements, all fully packaged applications on the current Beacon product range, ready for first time offer and within the packagers monthly quota, will need to be with Beacon by close of business on Friday 13th November.

Conrad

The end of sub prime lending - apart from a couple of very high chargers that do a modicum of business.

This will cause the gap between rich and poor to widen - essentialy a huge underclass of people unable to access the housing market. Not just those with an imperfect credit history, but millions of others with less than straight froward cicumstances.

This could be Labours nemesis once the british public finds out the extent of the proportion of the populace unable to access the private property arena.

mortgageseeker_2

hi Guys


Does that mean i will be okay if i already have an offer and as long as i complete by 25th February 2010 ?

thanks so much

mortgageseeker

Leon_W

The way I read it you should be fine mortgageseeker although completeing on anything with Beacon is a bit of a lottery. Best of Luck.

Senior_Paper_Monitor

A view with which I concur 100% Conrad - there is a huge social change taking place almost unoticed by the media and masses all concentrating on the more obvious headlines such as redundancies, bankers' bonuses, MPs expenses and Gordon Brown's spelling.

. and yes Mortgageseeker that appears to be exactly what it means for you provided the audit valuation stacks up (Good Luck!!), not exactly clear though whether they would re-offer if not (but as yours has clearly already been submitted for offer prior to today it appears they may also be willing to re-offer prior to 27th November if necessary).

mortgageseeker_2

hi Leon,

thanks for that and what do you mean a bit of a lottery, i thought once you had your offer you were okay ?


hi senior paper monitor, thanks for replying, so is that what a reoffer means, once you have had to have an audit valuation they have to reoffer ? well i know that ours went okay and i think that they have agreed to completion next week ?

thanks so much guys

mortgageseeker

sillysue

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LizEstelle

sillysue wrote: »

Oh my god im absolutely devastated...I had my offer from Beacon in September & am due to complete next Friday 20th November, my solicitor sent everything to b legal yesterday for release of funds.
So is there a huge chance that this will all fall through if they ask for a audit revaluation or will my funds be set aside???
Feel sick to the stomach...please someone make me feel better.

Can't see how it would affect you as you are 'business in progress' which they would surely honour and have funds already set aside for you.

This refers to new applications by the looks of things.

sillysue

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