Today: Last Update:


Do you expect to see less or more second charge mortgage lenders in 2018?

Non-conforming loans on the rise, claims lender

Non-conforming loans on the rise, claims lender

Growing confidence among lenders has led to a rise in non-conforming loans, according to Jeff Knight, head of marketing at Pepper Homeloans.

Jeff cited research conducted by Pepper Homeloans that found that its brokers had experienced an increase in demand for near-prime lending.

“I don’t think this is because there are more non-conforming borrowers all of a sudden, but because there are more lenders willing to help them and their general confidence has grown since the recession has ended,” Jeff explained.

“We have also seen a rise in CCJs and a fall in arrears, so we have seen lenders see the market differently to the pre-credit crunch days.”

Jeff claimed that this growth could extend beyond Brexit.

“If mainstream lenders tighten their criteria, then there will be an increase in demand in my view.”

Despite this, Jeff admitted that the impact of Brexit was far from certain and not every lender stood to gain.

“…On the whole, any possible impact from Brexit will be more universal across the whole mortgage market rather than specifically for non-conforming.

“Where there could be an impact is on supply of loans due to the way some lenders are funded.”

What are near-prime loans?

Near-prime (sometimes known as non-conforming) loans are loans that do not fall under traditional lending criteria.

Reasons for not meeting these criteria can include poor credit history, excessive loan demands or a lack of security.

What is the appeal?

Traditional lenders may be reluctant to offer near-prime loans as they can pose a greater risk than lending that falls within a prime set criteria.

Jeff explained that near-prime loans could present an opportunity to specialist lenders.

“Since such loans were first developed, [they] have been helping consumers obtain a loan when they would otherwise have struggled.

“For the most part, this is important, not just for the borrower and the adviser, [because it] also has a positive impact on the whole mortgage and housing market generally.”

However, Jeff warned that non-conforming loans should not be taken lightly.

“…It is only of benefit when a lender lends to a borrower who will repay the loan.

“There were many reported stories during the downturn of irresponsible lending.

“While I think such stories were over inflated, the industry must learn from the past and continue to lend responsibly to borrowers who are ‘non-conforming’.”

I well omega replica watches removed them, in I below. Those companions call fake rolex watches sounded like a bird chirp. Squeezed between the fragmentation omega replica of the basalt is cold crunching sound rolex replica watches of quicksand. Flat slopes gradually, I came to the edge of breitling replica watches the crater, a cement embankment covered with dark brown on top. I ran over to cartier replica watches see the cement, the steel roof covering the top: This is the beginning of replica watches the 22 century dome structure. It would appear that we have longines replica watches come to the right place. From my u boat replica watches current position.