View more on these topics

Finding a way back to specialist lending

GUY GARRARD, HEAD OF BUSINESS DEVELOPMENT, TIUTA
GUY GARRARD, HEAD OF BUSINESS DEVELOPMENT, TIUTA

If there was a magic wand that could banish the words non-conforming or sub-prime from the memory bank of the nation I wonder how many in our industry would use it.

Maybe if we could subliminally convert these words to the phrases ’not quite vanilla’ or ’just a little unconventional’ the deals would not be viewed with such distain by certain parties.

Of course, it’s not the words themselves that put the regulator and potential investors on edge, it’s the underlying problems caused by this area of the market that have left an almighty financial hangover.

Of course, there’s no getting away from these words however we dress them up, but there’s also no getting away from the growing need for such products.

As a result of the recession more people are being left with impaired credit ratings. This is a fact of life and inevitably will lead to some kind of revival in the specialist markets.

Kensington says it will consider lending to applicants with defaults and County Court Judgements but many commentators – Kensington included – have been quick to play down the notion of a significant return to sub-prime.

But surely this can’t be too far away, in some subtle guise at least. Where demand and profit are evident there will be no shortage of providers ready to dip their toes in the water.

We don’t want to go back to the days of irresponsible lending but a compromise must be found soon or the number of ’not quite vanilla’ clients will continue to grow and find borrowing impossible.

Recommended

Northern Rock cuts rates on some Everyday deals

Northern Rock has cut rates on selected deals in its Everyday mortgage range by up to 0.3% and launched additional rates for residential and buy-to-let business.

27

No happy ending for HoC ARs

Appointed representatives of Home of Choice and no doubt its directors have been left shell shocked by the news today that the network is to go into administration.

ANDY LEES, KEY ACCOUNT MANAGER, UINSURE
1

Get your foot in the door with tenants

Everywhere you look it seems you are hit with more depressing statistics on mortgages. With numbers remaining low, to the uninitiated it would seem that general insurance opportunities should also be in short supply. But while mortgage advances show little sign of increasing the same cannot be said for the number of clients becoming tenants. […]

Canada Life annual IHT survey results

75% of wealthy unaware of new residence nil rate band IHT allowance Just 4% were aware the new allowance will be up to £175,000 per individual Lack of awareness of IHT rules means families risk paying a bigger bill than they need 83% think the current inheritance tax rules are far too complex A remarkable […]

Newsletter

News and expert analysis straight to your inbox

Sign up