The Office of Fair Trading announced new guidelines for non-status loans on 18 July. CMC has 33,000 customers, of whom 27,000 already have single- rate plans. It will continue to consider loan applications if interest payments are less than 40 per cent of borrowers' gross income.Reuse content
City Mortgage Corporation, the largest provider of mortgages to "non- status" borrowers, is withdrawing its controversial two-tier interest rate plans with effect from Friday. They will be replaced by a single rate plan, David Steene, managing director, said. Non-status lenders have been blamed for sharply increasing interest rates as soon as borrowers miss a payment and forcing them to lose their homes.