The Mortgage Advice Bureau has set up a partnership with Direct Financial Services to offer loans to borrowers who are unable to get mortgages on the high street.
The broker will be offering the service from 11 specialist sub-prime firms.
One in four people are turned down by mainstream mortgage lenders. These applications do not necessarily fall into the category of people with CCJs or previous repossessions. Applicants who have low credit scores often have not held a bank account for a sufficiently long amount of time or are self-employed.
Direct Financial Services sales director Alex Knaggs says: “A large proportion of potential borrowers find it hard to borrow on the high street and we are helping to fill the gap.”
MAB chief executive Peter Brodnicki says: “We feel it is essential from a customer service perspective to offer a top-quality range of sub-prime mortgages. Direct Financial Services will enable us to offer a first class range of competitive products to our increasing number of non-conforming clients.”
Mortgage Force managing director Rob Clifford sys: “There is a significant market opportunity. However, the danger we would see is that some clients could end up with a much higher rate than on the high street. The regulatory bodies should have some interest in this and they need to demonstrate the appropriateness of this type of loan.”