Since then, we know that at least one lender did take up a trademark and use the name but we have a gentleman’s agreement with them that we can still use the term.”
The other bone of complex prime contention is to do with definition. Various other lenders have gone out of their way to make people understand that complex prime isn’t a straightforward substitute for sub-prime. “We get calls from brokers saying they’ve got a client who went bankrupt three months ago and can we help them,” says Vic. “That’s not complex prime. That’s sub-prime and lenders aren’t going to do it.”
The complex prime sector is not poor
credit, rather it’s not straightforward credit. And Dale says this sector of the market accounts for around half the business AToM arranges. “Complex prime is a growing beast,”
adds Vic. “It’s just going to get bigger and bigger. More and more lenders are getting into this tick box mentality. It’s a Catch-22 - the whole idea of the tick box system is for lenders to capture the best clients. Unfortunately the reality is in many cases they’re turning the best clients away.
“It might be those clients have too
little credit, too much credit or they’re not on the voters’ roll for example. There may be very good reasons for all these things but they still cause them awful problems getting a mortgage.” This certainly describes a growing need for complex prime on the demand side of the equation, but the rub lies with whether lenders want to offer supply to cater that demand. “There is definitely supply from lenders if you know where to go,” says Dale. “Lenders are now making risk-based pricing decisions on whether to lend. We arrange quite a few cases where deals are offered at a rate over the lender’s standard variable rate with a set period of early repayment penalties. “It’s out of the ordinary and they price
it for risk. They can be more flexible than that as well - on occasion there’s a wider balance to be struck between the
Pictured: Vic Jannels and wife Sheila Jannels mortgage introducer MAY 2011 35
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