View more on these topics

Factory farming underwriting is affecting self-employed

Rob Jupp, managing director of Brightstar Financial, has hit out at mainstream lenders for adopting what he calls a factory farming approach to underwriting.

He claims many lenders have abandoned individual underwriting in favour of a standardised approach which disadvantages the self-employed.

Jupp says: “Today’s business owner is working in difficult trading conditions and lenders looking for the usual three years’ accounts are rejecting many good applications simply because of out-of- date thinking.”

Brightstar has a two-year discounted rate with no early repayment charges for the self-employed through Kent Reliance. The deal requires just one year’s accounts.

He adds: “The feedback we are receiving from brokers backs up our perception that mainstream underwriting has largely given up on underwriting individual cases for a factory farming approach in which the self-employed are particularly at a disadvantage.”

Recommended

Rising cost of wholesale funds threatens lending

The high cost of wholesale funding may force lenders to scale back their lending, with Lloyds Banking Group revealing that it is looking to cut its market share by 3%. Speaking to analysts last week about its Q1 results, Antonio Horta-Osario, chief executive of Lloyds group, said he aimed to reduce his bank’s share of […]

BSA elects new chairman

David Webster. chief executive of the Hanley Economic Building Society has been elected as chairman of the Building Societies Association.

Capita director moves to Virgin Money

Virgin Money has recruited Capita’s Gordon Soutar as operations director, with Brian Brodie becoming customer and distribution director. Soutar joined Capita’s life and pensions arm as operations director last June and was previously chief operating officer of HML. Brodie, former chief executive of HML, joined Virgin in January as operations director after leaving HML in […]

Newsletter

News and expert analysis straight to your inbox

Sign up