BM Solutions has withdrawn its self-cert sub-prime product range to cut its business volumes.
It has also reduced the maximum LTVs on its status sub-prime deals from 90% to 80%.
Tim Hague, managing director of BM Solutions, says: “It’s not a credit issue, it’s about managing volumes.
“We tried using pricing as a lever and it didn’t work, so we’re having to toughen up our lending criteria. This isn’t ideal but it’s something we’ve been forced to do.”
Meanwhile, research from BM Solutions reveals that 41% of the brokers polled say they do not market their businesses.
The brokers say that repeat business from existing clients is their most important business source, while 38% claim that referrals from previous clients are the lifeblood of new opportunities.
Hague says: “It’s important for brokers to strike the right balance between attracting and retaining clients.
“Marketing may not always be at the top of brokers’ lists but they should take a long-term approach.”