Future Mortgages ceases new lending

Future Mortgages has been shutdown by parent company Citi and will cease all new lending from 21 May.

Citi will continue its UK business through the Citi and Egg brands and will no longer lend through Future or CitiFinancial.

The move is likely to lead to a number of redundancies, with up to 600 expected in the UK and many more in the US as Citigroup has been hit hard by US sub-prime writedowns.

Citi says it will honour pipeline business where KFI’s have been issued and a decision in principle has been submitted before 21 May. Unpackaged business must reach the firm by 26 May, while packaged business must be received by 16 June.

Cheshire Mortgage Corporation says it will assist brokers who are unable to submit business within these time limits and may otherwise struggle to find funding for non-conforming clients.

Gary Bailey, director of Cheshire Mortgage Corporation, says: “Cheshire Mortgage Corporation has a strong appetite for new business, and we accept clients with unlimited arrears and CCJs.

“We also cater for all income sources including self-cert and DSS benefits, and any property type including non-standard constructions and shared ownership is accepted.”

Future is the latest in a string of non-conforming lenders to suspend new lending as funding sources for mortgage dry up, with higher-risk sectors particularly badly hit.

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