Fear factor: Borrowers with adverse credit left out in the cold
Over fifty per cent of brokers have been unable to help adverse credit borrowers, according to a recent survey by Mortgage Solutions.
53 per cent of brokers questioned revealed they failed to place a single adverse client in 2011.
Over 30 per cent of mortgage brokers successfully placed up to 25 per cent of their applicants. 12 per cent claimed to place up to 75 per cent while only 3 per cent were able to find a lender in the majority of their cases.
Whilst lenders are slowing beginning to increase their range of higher LTV mortgages, little is being done to help those with a poor credit history which, in the reality of the current financial climate, is a growing number of people.
Introducers remain fearful for the future of this market group; the proposed new rules in the Mortgage Market Review (MMR) are likely to lead to high-street lenders shunning adverse credit borrowers further still. Expected in 2013 at the earliest, the new rules would mean self-certified mortgages would no longer exist and all borrowers would be expected to fully verify their income.
We’d like to hear your thoughts on this. Have you had difficulty helping clients with a poor credit history? What realistic steps do you think could be taken to help this ever-growing market group?
Content correct at time of publication