View more on these topics

Automated systems can be fair in the non-prime market

I was interested to read last week on Mortgage Strategy Online that Kensington was looking to offer sub-prime deals to borrowers with a few County Court judgments.

While a commendable approach, the back-handed criticisms of credit scoring and lenders that use such techniques is unwelcome.

It is not credit scoring that prevents such applicants from obtaining credit. It is the lender’s decision to not operate in this market and then introduce an automated process to control costs, reduce needless referrals and maintain consistency.

I work for a lender that used to operate in the non-prime market and we had a number of automated systems that were successfully used and enabled a fair assessment of applications.

It wasn’t a woolly definition where borrowers were offered inappropriate products based on one person’s interpretation of policy, nor was it prompted by the desire to generate more commission by classing clients into a higher risk category.



Adrian Coles

Thoughts of home sweet home

Attitudes to housing tenure are changing, with a sharp fall in the number of households buying their home with a mortgage, says Adrian Coles,
director-general, the Building Societies Association

Problems at Dunfermline rocked the mutual sector in 2009

Societies must keep it simple

According to some experts the troubled building society sector can emerge from the recession in good shape if it adheres to traditional values and methods, says Christine Toner


Low mortgage rates are temporary blip

What would the average person – or indeed a mortgage professional – say the average Bank of England base rate has been over the past 35 years? My guess would be around 5%, and I bet many borrowers may think it was even lower than that. In fact, the average base rate between 1975 and […]

Election time

So the parties are ready, the date is set and they’re off!  The election will now take centre stage for the next month and there will be plenty of column inches filled with the pros and cons of each of the main contenders as they do battle to outwit their opposite number. 


News and expert analysis straight to your inbox

Sign up