IL&P-owned Springboard stops giving out home loans (Irish Independent)
SUB-PRIME lender Springboard stopped accepting applications for new mortgages from close of business last night.
The lender, which is owned by Irish Life & Permanent (IL&P), said it would not give out any new loans from the end of June.
The company describes its business as mortgage lending to the "near prime" market, catering for people who have problems securing loans from traditional banks or building societies.
The company was set up in December 2006 as a joint venture with Merrill Lynch. IL&P became 100pc owner of the business last year. Springboard has advanced around €500m in loans.
It said the average loan to value of the properties it had financed was 54pc.
Springboard chief executive Shane O'Sullivan said the announcement would not have any effect on existing customers.
He said the decision to stop lending was due to a move by IL&P to focus on its core mortgage business at Permanent TSB, in a market where funding had become more scarce and expensive.
"The Springboard business model worked very effectively and profitably but in a market where funding has become more expensive and more scarce, the group has made the decision to concentrate its mortgage lending activities on its traditional core market and we respect that," Mr O'Sullivan said.