Copy article

Impaired credit mortgage feature -- trade press

Journalist: Emma Simon, Mortgage Strategy

ended 13. November 2024

I'm looking to write an article for the mortgage trade press on growth in the  Impaired Credit market. I am looking to put together this feature over the next week 

Basically I'm looking to answer the following questions:

  1. Are brokers/ lenders seeing more demand for these products (I assume so given  cost-of-living problems/ Covid etc). 
  2. How have lenders responded - are we seeing more products, and also a more sophisticated 'banding' approach, catering  to different segments of this market (ie - just missed a couple of payments,  to more severe historical credit problems). 
  3. What are the sort of range of rates avialable to thse different parts of the market – how does this compare to 'standard' rates? ie what's the ‘cost’ of having a less than perfect credit history? 
  4. Is this a key market for brokers - I am assuming these are exactly the customers who are no well served by high street lenders? 
  5. How can brokers ensure they are giving the best service to customers/ souring the most appropriate deal? 
  6. Are we seeing much in the way of rate changes for this sector?  Are lenders tightening up criteria or are they becoming a bit more generous - perhaps with Bank of England lowering rates again.

Any other comments or observations on this market gratefully received. It is not an area I've covered in detail before so all insights welcomed.

Many thanks

 

Emma. 



 

1 responses from the Newspage community

Copy all

Copy

David White
Chief Operations Officer at Simply Lending
Demand for specialised mortgage products is increasing, driven by both credit issues and more complex income structures post-COVID.

The good news for borrowers is a steady rise in specialist lenders and more flexible criteria, accommodating a range of needs from minor credit issues to severe cases.

Rates in this sector remain competitive with high street lenders, around 4.6% for Barclays and 6.5% for Kensington, with a larger impact felt on bigger loans.

This is a key market for brokers, who play a vital role in navigating complex criteria. Expertise, current knowledge, and a genuine desire to help are essential for brokers to secure the best deals for clients.

Whilst there is an appetite for lending, we have found there is more of a battle post application than there used to be as lenders have doubled down on their focus on creditworthiness, even for those meeting all criteria requirements.