BMS reports 500% surge in sub-prime deals

Birmingham Midshires Solutions has recorded a massive 500% increase in sub-prime business volumes over the last four months.

Michael Bolton, director of mortgages at BMS, says the increase shows the decision to focus more on direct business – and limit packager business to 14 &#39approved&#39 providers – is working.

He told Mortgage Strategy: “Our current campaign is clearly working. Today in sub-prime, something like 80% of business is placed via packagers. But, unlike the rest of the market, BMS generates 75% of its sub-prime business direct through the same mortgage clubs that supply self-cert and buy-to-let volumes. We&#39ve told the market to deal with us direct, or use a small number of distributors under the packager seal.”

And he adds: “Brokers who were reluctant to get involved in sub-prime can take the comfort of a high street brand. Those brokers that have dealt with packagers clearly understand our message – that we are still prepared to pay 1% proc fees, but it is better to deal with us direct opposed to the bulk of other sub-prime lenders.”

Mike Waite, director of Royston-based Mortgage Quest, says: “The increase doesn&#39t surprise me. Compared to other adverse lenders BMS seems easy to approach. What entices me is a seemingly prime lender offering good sub-prime products with good proc fees.”