Like most, the specialist mortgage packager fraternity have diversified over the last couple of years. However, the core functionality remains, in the main, exactly as it was before – sourcing, placing, packaging, instructing and challenging valuations, chasing offers and completions, offering niche products, distribution and more.
Ancillary products are complementing core activities. These include bridging finance, secured and unsecured loans, commercial mortgages, assistance and support for non-regulated intermediaries, insurances and the list goes on.
And, more recently, “complex prime”, although some of us have been offering this for years. A very simple phenomenon – going back to basics, manual underwriting for clean clients who simply fail the high street’s credit-scoring mentality, often for no apparent reason. Incidentally, it was for these exact types of people that credit scoring was set up, yet it is turning away asset rich, cash rich, credit short clientele….probably the best type of clients!
The surviving, re-emerged specialist packagers are becoming the one-stop shop for all financial needs and requirements. We are going strong and if anything, our proposition and offerings are getting stronger.
As intermediaries source all possible opportunities for tomorrows client, our human sourcing function comes into play. Many packagers dealt purely with adverse or sub prime. Today, it is all things to all people. Prime cases are piling in the door when all credit-scoring high street options have been exhausted. Every case is a priority, mainly due to the time it has taken for some of these lenders to decide they no longer wish to proceed, after receiving the full application.
Some lenders remain specialist packager friendly. Igroup, the GE Money-owned lender, are without doubt, the most positive and forward looking lender within our marketplace. They have regularly requested, and listened to, feedback and sought gaps in the market where they could provide a niche proposition. All this from a lender that allows some historic adverse, should the case pass credit score, and with rates starting from 3.49 per cent. If only we had more lenders like them in the market.
Particularly as the enquiries for sub-prime/adverse/non-conforming/credit repair mortgages are most definitely on the increase again. In many cases the applications are from people who have suffered genuine hardship through divorce, or suffered due to the recession/redundancy and who are the people who need/deserve help and a sensible underwriting assessment.
Depending on the level of adverse, the options available, below 75 per cent LTV vary. Of course, the more adverse, the lower the LTV, the higher the rate and, in some cases, the longer term the redemption penalty. For those over 75 per cent LTV, there are a few options depending on the adverse.
Yes, there are other lenders who will look at applications on a case by case basis but, in the main, there are only a small number who will look at adverse cases.
Given the above, there are many benefits in working with the specialist packager marketplace and hopefully I have dispelled some of the mystique which surrounds this arena.. It is not just sub-prime any longer. Our sector can adjust and survive and we are here for the long-term.
Dale Jannels is sales and marketing director at All Types of Mortgages.