AA Mortgages is the fifth lender to close its doors to new customers in the past three months as fierce pricing wars force providers out of the market.
The lender confirmed today that it will not be offering mortgages to new customers for the foreseeable future, however it did not rule out re-entering what it described as a ‘highly competitive market’ in the future.
This won’t affect existing customers, but if you already have an agreement in principle from AA Mortgages, you’ll have to complete your application within 30 days from the date you received it or you’ll lose it.
AA Mortgages are underwritten by the Bank of Ireland, which says it ‘supports AA’s decision to stop offering mortgages to new customers for the time being’.
But it declined to confirm whether it or AA Mortgages was behind the decision to stop new loans under the AA banner.
AA Mortgages follows other lenders Fleet, Amicus, Secure Trust and Magellan out the door
The Bank of Ireland also underwrites mortgages provided by Post Office Money.
When asked whether there were plans for Post Office to stop new mortgage lending, a Bank of Ireland spokesman replied that both ‘Bank of Ireland and the Post Office remain committed to providing mortgage products for Post Office customers’.
The small exodus of lenders since December has led to concern these could be early warning signs that a second credit crunch is on the way.
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