Suspension of New Business

SPML and Preferred have announced to the markets they will be suspending new originations from 2 April 2008 onwards.

Key dates for both SPML and Preferred are as follows:

• Funds booking will cease at 5.00pm on 2 April 2008
• All applications must be received within 29 calendar days of receipt of the booking confirmation
• The last date for applications to be received will be the 1st May
• All cases must be offered within 10 calendar days of receipt of application
• Note: no offers will be extended past their normal expiry date
• All offered cases must complete within 90 calendar days from offer date. Final cases to complete no later than the 11 August

Criteria Restrictions and Rate Rises

To allow MPLC to continue to control new business volumes, they will shortly be making a number of changes to lending criteria and rates.

Product Withdrawals:

• All Fixed Rate, Self Cert, Right to Buy and Light products will be withdrawn.

• All initial and revert rates on remaining 2 year discount Near Prime Plus, Near Prime and Super Light products will increase by 1%.
• Maximum LTV will reduce from 85% to 70%. Mortgages plc fees can still be added above this limit.
• Minimum property value 75k
• Maximum loan size will be capped at 300k.
• Minimum income 20k (sole or joint applicants)
• No bankruptcy or IVAs allowed in the last 3 years.
• Builder Deposits will no longer be accepted.
• Assisted Purchase Schemes, including Key Worker will no longer be accepted.
• No arrears allowed in the last 3 months on Super Light products.
• All applicants must be confirmed on the voters roll at their current address and have an active payment history.

Product Update

Kensington have repriced their product offerings. New rates became effective from the 1st April 2008. All bookings for previous cases must have been undertaken before close of business on the 31st March 2008.

LTV Reduced

Future Mortgages have announced to the market that with effect from close of business Monday 7th April 2008 they are reducing the loan to values on their full First Mortgage Product Range to a maximum of 80% on Prime, Near Prime and Light Products. Medium Products will be reduced to a maximum LTV of 70% and Heavy Products a maximum LTV of 60%.

Future will honour any pipeline business where KFIs have been issued and where a valid online Decision In Principle (DIP) has been submitted up to and including Monday 7th April 2008. The closing date for receipt of fully packaged business will be Friday 9th May 2008.

Replacement Criteria

With effect from 31st March 2008 the following LTVs will now apply across the Accord Credit Repair range:

LTV Reduced

GMAC have brought a new April guide to the market. This product refresh has removed all 2 year fixed rates. Fully packaged applications must be with GMAC no later than close of business 28th April 2008.

Product Refresh

First National will be introducing a new product guide with effect from 4th Aprul 2008. The kay changes of note are:

• All products from 60% LTV will be credit scored
• Interest rate rise on discounted products of between 0.05% and 0.25%
• Fixed rates rises of between 0.25% and 1%
• Self cert still available to 90% LTV, loadings now applicable on all bandings