You are here: Home - News -

Happy days… for some – Magellan

by: Matt Gilmour
  • 11/10/2013
  • 0
Happy days… for some – Magellan
Having suffered a battering as a result of the credit crunch, both the housing and mortgage markets appear to be on the up.

House prices in England and Wales had their biggest month-on-month gain of 0.5% in September, with prices rising by 2.4% from the same month last year, the largest annual increase since September 2007.

The CML has also reported a healthy increase in gross mortgage lending, with £16.7bn having been lent in August, up from £12.9bn during August last year. 

 

Happy days, and the Prime Minister’s recent decision to pull forward the phase two roll-out of the Help to Buy scheme will make even more prospective homebuyers happy.

All of which is great for ‘standard’ borrowers whose only problem is being unable to raise a sufficiently large deposit. But for those borrowers with an impaired credit record, all they can do is watch the housing and mortgage markets pass them by. Which seems terribly unfair, especially for those borrowers who have worked hard to regain control of their finances and have proven their ability to manage their monetary affairs prudently.

Despite the government not regarding such borrowers as a high priority, there are good reasons for financial advisers to take them seriously. Until recently, no mortgage lender was willing to consider borrowers with serious adverse credit records, but there are now lenders willing to help borrowers with all manner of credit blemishes.

Agreed, it does require a bit more broker input to convert an impaired credit applicant into a satisfied customer, but the process is neither as difficult nor as scary as you may think.

As the housing and mortgage markets continue to recover, brokers should remember that it isn’t just the mainstream mortgage market which is generating new business opportunities. Other sectors such as the impaired credit market also offer worthwhile opportunities for brokers.

 

Matt Gilmour is managing director of Magellan Homeloans

Related Posts

There are 0 Comment(s)

You may also be interested in