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.”