Surrey-based advisory firm Best Advice Financial Planning is to launch a specialist sub-prime division to cater for increasing demand in the sector.
The firm, which has traditionally dealt in the prime market, says that with rising levels of consumer debt, this is a good time to enter the sub-prime market. It is developing closer links with major sub-prime lenders including Kensington, igroup, Mortgages PLC and GMAC-RFC.
Tony Moss, partner at Best Advice Financial Planning, says: “Under the Mortgage Code we have to be seen to assist people in financial difficulties sympathetically. We want to develop this area of advice. Though we haven't previously turned sub-prime business away, we have only negotiated with normal high street lenders who usually only take on low LTV cases.”
Moss adds that brokers dealing mainly in the prime market should acquire a better understanding of the non-conforming market.
He says: “Intermediaries working mainly in the prime market may not be doing the best thing for sub-prime clients. More knowledge is needed.
“It's no longer a case of 'ne'er the twain shall meet' with prime and sub-prime – especially with the emergence of near-prime and light adverse deals.”