Since TMA’s agreement with AToM aimed at giving members access to a range of exclusive products including complex prime deals back in mid-June, the mortgage club has noted that enquiries have risen steadily on a monthly basis.
Roughly one-in-four enquiries are now directly related to complex prime products, reports TMA.
Phil Whitehouse, head of TMA, said: “It’s increasingly evident that brokers are struggling to place the growing number of non-standard borrowers who are failing lenders credit scoring. The ‘computer says no’ attitude to credit scoring has been highlighted in the press recently and with some just cause. It’s important that we support brokers and their clients in this area as many have a good, clean credit history and can prove affordability. This is not to say automated systems don’t have their benefits but the amount of good quality business which is regularly being rejected could have some serious implications for the wider market if this trend continues. Fortunately there are still lenders who want to do business with low scoring creditworthy customers and it is up to us to ensure that brokers have access to such deals for their clients.”
Dale Jannels, sales & marketing director at AToM, said: “Just because the computer says no, does not mean a customer can’t have a mortgage. Non-credit scoring lenders not only have an appetite to lend and a positive approach to getting deals through but they will also consider complex applications that need ‘thinking’ about.”
