First to go was DB Mortgages who have recently been followed by Unity Homeloans and Infinity Mortgages. All three lenders who play a large role in the sub-prime UK mortgage market have stated that their withdrawal is simply about "re-pricing" and that they intend to return to the market.
"I think the initial statements sent out by UK lenders council was slightly naive as a lot of the main US lenders have stakes in the UK market which means there will definitely be a knock-on effect. Hopefully the market won't go into panic about the recent withdrawals and cause a domino effect," said FancyAMortgage.co.uk company director Paul Giles.
FancyAMortgage.co.uk has seen an increase is user applications for a sub- prime mortgage quote since the US market crash which possibly means that users might be trying to 'get in quick' out of fear of a sub-prime market lending decline.