Mortgage Solutions reported last month Magellan managing director Matt Gilmour called on brokers at a mortgage show to be more open to its credit repair products.
This prompted warnings over both the cost and suitability of the lender’s products by trade body AMI chief Robert Sinclair in mid-November.
But Tony Salentino, director of packager Complete FS, has hit back. He said the lender had been fully approved by the FCA and added advisers were best placed to decide whether the lender’s heavy-adverse mortgages are suitable or not.
“Surely we have enough experience, here in this room, to be able to decide with a client whether or not a short-term credit repair type product is the best thing for a client, as opposed to renting for another two or three years,” he told The Mortgage and Protection Event in Birmingham.
“I think that should be left to the experience in the room rather than our trade bodies suggesting that a lender is charging too much.”
A straw poll of the audience found the majority of brokers would recommend such a product in the right circumstances.
Earlier in the day Salentino called on brokers to welcome ‘unconventional’ clients and said the non-prime lending sector was experiencing growth at present.
“It appears niche lenders and mutuals are recognising that the human underwriting process gives them more flexibility,” he said. “They can now look at those customers who have effectively been ostracised by the high street, hit by the computer says no mentality who may have had a historic minor issue.”
Matthew Wyles, Castle Trust senior adviser later said there were ‘more excluded customers than ever before’.
