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TSLE2020: Lower ICR products needed to serve pent up purchase demand

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  • 06/02/2020
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TSLE2020: Lower ICR products needed to serve pent up purchase demand
Lenders who are not regulated by the Prudential Regulation Authority should consider launching products with lower interest cover ratios (ICR) to accommodate purchases, a specialist lender has said.

 

Speaking at The Specialist Lending Event in Birmingham, Jonathan Samuels (pictured), founder and CEO of Octane Capital, said purchases needed “high leverage” and this could be provided with low ICR products. 

Samuels said product innovation needed to be “borrower-led” and predicted 2020 would bring a shift in purchase activity due to “political stability” and “pent up demand”. 

 

 

He also said the specialist sector was competitive, so for lenders to maintain market share they needed to look at the needs of borrowers. 

Samuels said: “You just can’t stand still at all. You’ve got to constantly looking for solutions for borrowers who fall outside of mainstream. 

“We’ve got to look at expanding our criteria safely.” 

 

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Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors. Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies. This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector. She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021. In her spare time, Shekina likes to read, travel, listen to music and socialise with friends. She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content. Follow her on Twitter at @ShekinaMS

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