Managing director Jonathan Naylor claims high-risk borrowers are paying too little in the fight for market share which means margins are tightening for some lenders.
Rooftop pulled out of the heavy-adverse sector last year although it is likely to make a return at some point but only after a detailed analysis.
Naylor says: “We moved out of high adverse as we felt some of the criteria were wrong. It was too competitive and the margins were coming down when the quality of the risk did not match it. With the typical products we were competing against, the type of client and the price did not match.”