Choice is limited for those outside the box


I remember writing a rather flippant article in the midst of the credit crunch in which I was trying to rally the troops by saying that if there were only two lenders left clients would still need advice and not to panic.

While there are of course more lenders in the market, with restrictive underwriting criteria it certainly feels like there are only two lenders at times.

Having been off the shop floor for a while after our management buyout, I recently had calls from three clients who were either on the move or looking to remortgage, so I decided to oversee the deals to keep my hand in.

One was 72 and self-employed, and wanted 50% LTV but no-one in the mainstream sector was interested as he is too old so I went with a private bank. Another client is 64 and self-employed but has converted his out-buildings into storage units and now trades from home to save rent.

I’m still trying to place him after two lenders’ surveyors refused to put a value on the property as they deemed it for commercial use.
The other is 55, pays himself by dividends from his limited company and wanted a let-to-buy deal at 75% LTV.

At the time of writing I am still trying to place him after getting rejected by decisions in principle from three lenders after initially getting the thumbs up from their underwriter.

Despite recent developments it seems to be getting harder to place business and choice is limited for clients who don’t tick all the boxes.