GE Money Cuts Secured Loans Through Subsidiary
Another lender has announced its decision to withdraw from the secured loan and second charge mortgage market this week, adding to the long list of lending organisations which have already made similar decisions.
GE Money Home Lending (GEMHL) has reduced its exposure in the loan broker and intermediary markets by announcing that it intends to stop offering secured loans through one of its subsidiary companies, igroup, although as yet no decision has been made as to when these changes are likely to take place.
The parent company, GE Money has been suffering over the course of recent months, seeing its share price drop significantly due to worries that the loan company may be about to have its AAA credit rating reduced and the news that it intends to cut secured loans through one of its subsidiaries comes as little surprise to financial experts.
However, igroup is only one division of the company and GE Money intends to still continue offering secured loans and mortgages to individuals directly, as well as remaining in the secured loan, or secondary charge loan market through its other subsidiary company, First National, which will be unaffected by the recent announcement.
Despite the news, GE Money has said that it is still serious about remaining in the secured loan market and continuing to support loan brokers and intermediaries. A spokesman for GE Money, Mark Maguire said “We are still in the seconds market but via our First National range. The rationale behind this move is simply that the First National secured loan range better reflects the customers that we are currently targeting. Given the current market conditions this is a logical move.”
