Leap Years Day, and love is all around.

Following similar recent announcements from Alliance & Leicester and Nationwide, more reductions have been announced in the amount lenders will lend as a maximum percentage of the purchase price. Step forward Cheltenham & Gloucester, who have now reduced maximum loans from 95% to 90% across their product range. The lender said that the move was part of its 'prudent approach to lending,' adding that the ranges which had been withdrawn or had their maximum LTVs reduced only accounted for a tiny part ( just 1.7% of the lender's mortgage book had been 90% + loan to value deals) of its overall business. The lender is now refocusing efforts on its core business. C&G also apologized from giving intermediaries 'less notice than usual' after informing them of the developments on Thursday, for a withdrawal that evening. At least we got an apology this time ! Interestingly, parent company Lloyds TSB will continue to lend up to 95%. C&G said the decision was made in order to focus on improving service levels to its core products. As a broker, I find it is usual that lenders are swamped with business they cannot handle due to staffing issues when they have ultra-competitive deals. This leads to an ever decreasing spiral of service levels, so eventually lenders withdraw from a product range or market entirely (witness above) so that they can rein in the application levels, which allows them to get their service back to an acceptable level, that attracts more business that lets them make a profit (not that any product is unprofitable for them, heaven forbid.) As I said, it's a merry-go-round !

It's been a week of 'doom and gloom', with more redundancies announced, lenders making amendments to product ranges at short - or no - notice, technical problems with provider's web sites, and other issues such as poor service and outright stupid things like the inefficiencies I mentioned on Wednesday. For my point of view, I've been busy trying to arrange mortgages for people with bad credit history, and people who have come back to me after 'disappearing' whilst they searched for the perfect property, and trying to arrange buildings insurance on a property in a ex-mining area. I'm very glad to say that all 'problems' were able to be resolved. That's what I'm here for after all.

Today is the 29th February - Leap Years Day. Love is in the air, supposedly. Maybe I'll get that marriage proposal after all! My other half better hurry up as her parents are coming to stay for the weekend, which may put a dampener on such things ! On that note, I hope you have a good weekend. I intend to !

Today's thought: "Where there is love, there is life". (Mahatma Gandhi)