Mainstream lenders have factory farming approach to underwriting, says Jupp

Rob Jupp, managing director of Brightstar Financial, says mainstream lenders have largely given up on individual underwriting in favour of a factory farming approach.


He says by taking this approach the self-employed have been disadvantaged, but smaller lenders such as Kent Reliance are filling the void.

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conditions and lenders looking for the usual three years accounts are rejecting many good cases simply because of out of date thinking. 

“Cashflow ebbs and flows mirroring the economic turbulence over the past few years. It stands to reason that historic data more than a year old is not as relevant to calculating affordability as it is in times of greater stability. It is, in many cases, non productive as a reliable guide at the time of application in a fast moving economy like ours.”

It launched a two-year discounted rate with no ERC’s for the self-employed through Kent Reliance at the beginning of March.

The product also requires just one years’ accounts.

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

“Fortunately, our partnerships with smaller lenders like Kent Reliance, which has maintained its ability to look at each case on its merits, means we can continue to champion the self-employed.”

It has seen enquiries from advisers for business owners double since the launch of its self-employed product.