UCB Home Loans to close

Published: October 20, 2008

In an announcement earlier today, Nationwide confirmed that it is to close its specialist lending arm UCB Home Loans. UCB Home Loans have been part of the Nationwide for many years, and specifically looked after their customers need for specialist mortgages such as buy to let or self certification. UCB Home Loans will close their doors on Friday 31 October, although existing customers will still be able to apply for further advances or to transfer their mortgages to new properties.

The future of UCB Home Loans has been in question since the Nationwide acquired the Portman Building Society on the 27 August 2007. The Portman also owned a specialist lender called The Mortgage Works, whose systems and products were widely acknowledged to be the better option in many cases. Although the two were internally combined to form Nationwide Specialist Lending, the brands continued to offer separate product ranges, and crucially, operated separate applications systems.

With a large proportion of the UCB Home Loans administrative function having already been transferred to the old Portman offices in Bournemouth, many felt it was simply a matter of time before all specialist lending was conducted under The Mortgage Works branding. It comes as no surprise therefore that Nationwide have stated that the announcement today will in reality effect less than ten jobs. It is hoped that these employees can be offered alternative employment within the group. All affected staff were notified of the decision last Thursday, and the remainder of Nationwide employees have been informed today.

Andy McQueen, managing director of TMW, says: "We have stopped writing new business through UCB Home Loans.

"The market is ever-changing and we have come to a point where we no longer need the two brands.

"We have been looking at this for a while and it was becoming transparent that brokers were reporting a better experience through TM's technology than the slightly slower UCB Home Loans brand."

He adds: "The message we're sending out is not a negative one, Nationwide are still lending. We have a successful brand in The Mortgage Works we have just made the decision to put all our business into the one brand. In this market we no longer need the two brands."