News Review: Near Prime
Computer says yes by
Alan Cleary, managing director, Precise
Mortgages
does the near prime market exist or is it a figment of my imagination? Let’s look at it from a consumer’s point of view and see where that takes us. a Yougov poll published in the summer showed 30%
of all borrowers would be looking for a mortgage loan of some description over the next 12 months but only 33% of borrowers were confident about being accepted by a lender. the vast majority of those borrowers are concerned about how much equity they have to put into the deal, or are worried about their credit record. to put these concerns into context we should be aware of the facts. an estimated 4m people have missed at least one unsecured loan payment in the last 12 months. Some 1577 ccJs were issued every day during the first three months of 2011. around 2.1m people have had a ccJ issued against them in the last three years. and an estimated 1m people have missed a mortgage payment in the past three years. given these facts it is little wonder that people’s faith in
the mortgage market has been shaken and that includes mortgage brokers’ faith in being able to place a case if they are presented with one. clearly, there is reason to believe that many people will struggle to get a prime mortgage. Fortunately, there are lenders actively putting propositions together to cater for this large segment of customers who in many cases would make perfectly good borrowers, with good jobs and good affordability but unfortunately without the perfect credit record.
Innovation i cannot speak for the other lenders active in the near prime space but Precise mortgages is busy working on new product ideas in order to be a significant player in this market. a recent innovation that we have introduced is moving from a hard footprint to a soft footprint. We are now able to give an instant decision on near prime mortgage applications without causing detrimental effect to the customer’s credit record.
Because we use credit scorecards and the latest
technology we will give mortgage brokers a decision on their customer’s mortgage in about 10 minutes, day or night, weekdays or weekends, holiday or no holiday. We will always give a consistent decision rather than vague maybes that some lenders give. our computers never get sick, they don’t take lunch breaks and they are always ready for action. if we say “yes” to a case we mean “yes” and you should expect to see an offer within 10 days or so. of course we will not say yes to every deal but we will give you a quick no and won’t keep you hanging around for weeks to get a decision.
Remember the promise of a ‘flexible friend’? We do.
Times have changed.
Banks may have come and gone, but thanks to a refreshing approach to lending, many of the promises of old live on in Aldermore.
We provide mortgages to creditworthy borrowers who are being denied access to High Street products, favouring experienced underwriters over automated credit scoring. It’s a combination of experience, skill, and a willing attitude that we call ‘Expertise. Applied’.
Expertise. Applied
Only available via intermediaries No dual pricing Full online system No credit scoring
Experienced underwriters
Convert more business now. Call
0333 3211000 or visit
www.aldermore-mortgages.co.uk expertise. applied
Aldermore Bank PLC is authorised and regulated by the Financial Services Authority for deposit taking and regulated mortgages. Registered Office: 1st Floor, Block B, Western House, Lynch Wood, Peterborough PE2 6FZ. Registered in England no. 947662 ARM29-0911-300044
mortgage introducer OCTOBER 2011 11
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