According to a recent report Lehman Brothers, the lending specialists, could be considering withdrawing from the UK market, as the global credit crunch continues to wreak havoc across both the UK and the United States.
In a recent report it was claimed that the lending giant was considering suspending lending at its UK subsidiaries, Preferred Mortgages and Southern Pacific Mortgages.
It was also confirmed that amidst this speculation that some of its mortgage loan operations would suspended, the Lehman Brothers was also closely considering withdrawing from the UK market.
Last month the lender confirmed that around two hundred jobs across the UK were to go as it scaled back on operations. During last year Lehman Brothers closed its Southern Pacific Personal Loans operation, and its London Mortgage Company brand.
In fact, report suggest that Lehman Brother could announce their withdrawal from the UK market as early as the beginning of April, and industry officials have stated that officials from both Southern Pacific Mortgages and Preferred Mortgages have stated that they could be closing their doors in the very near future.
Many lenders have suffered as a result of the credit crunch, with many having to withdraw a range of deals from the market, as well as increase stringency over eligibility requirements or raise interest rates further in a bid to try and put off new customers.
This is because the difficulties they have faced in getting finance to fund their lending has resulted in funds starting to dry up for many. This has made it very difficult for some groups, such as first time buyers and those with poor credit, to get the finance that they need.
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