Mortgage News
“Factory farming underwriting” disadvantaging self-employed
Brightstar said a “factory farming” approach to underwriting taken by the biggest lenders is disadvantaging the self-employed and leaving demand unsatisfied.
Brightstar Financial, the national intermediary hub for specialist lending’s managing director, Rob Jupp (pictured) said: “Today’s business owner is working in very difficult trading conditions and lenders looking for the usual three years accounts are rejecting many good cases simply because of out of date thinking.
“Cash-flow ebbs and flows mirroring the economic turbulence over the past few years. It stands to reason that historic data more than a year old is not as relevant to calculating affordability as it is in times of greater stability. It is, in many cases, not useful as a reliable guide at the time of application in a fast moving economy like ours.”
Kent Reliance CEO Andy Golding, said: “Each self-employed case is different and we want to help good cases proceed.”
Brightstar said enquiries from advisers have doubled since the launch of its self-employed exclusive product with lender partner Kent Reliance.
Launched in March, the product offers a two year discounted rate with no Early Redemption Charges.
Aldermore Insights with Jon Cooper: Edition 10 – The biggest barrier to homeownership isn’t affordability. It’s outdated lending.
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