View more on these topics

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.”

Recommended

Abbey National sponsors training and competency workshops

Abbey National for Intermediaries is sponsoring a series of one-day interactive Training & Competency workshops from October 2002 until October 2003 at venues across the UK. The workshops are designed to help IFAs meet the FSA requirements post-N2 of having a T&C regime in place, and will be run by Phil Billingham Associates Ltd. The […]

Cold calling intermediaries urged to consider franchise route

Mortgage intermediaries who rely on cold calling for new leads have been urged to consider franchise opportunities if the FSA goes ahead with proposals to ban the practice. Many mortgage intermediaries are worried that a potential ban would lead to unemployment in the financial services industry as they struggle to find sales channels to replace […]

Pink launches Mortgage Express exclusive

Pink Home Loans has launched a new exclusive, fees-free, buy-to-let remortgage in conjunction with Mortgage Express. The product offers a discount of 0.26% for three years, giving an initial pay rate of 5.49%. In addition, there are no arrangement or valuation fees. David Copland, sales and marketing director at Pink Home Loans, says: “This is […]

Woolwich accused of fee delays

Brokers are experiencing serious delays in the payment of procuration fees from The Woolwich.In the worst cases, brokers have still not received payment for cases that completed in May. At least two national broker organisations – who do not want to be named – have complained to The Woolwich.In a memo to The Woolwich last […]

A modern horror story

Every day a quick scan of the news reveals some new horror that will change the lives of those involved forever – the unlucky accident on the way to work, a tragic illness that cuts a young life short or the holiday accident that leaves more than just a scar to cope with. We barely […]

Newsletter

News and expert analysis straight to your inbox

Sign up