Shaun Vickery is managing director of The Select Partnership
Giving the UK population a helping hand to get on the housing ladder is the Government’s favourite rhetoric at the moment, but little media attention is paid to the customers with adverse credit histories who can do much to build momentum in the market, both as first time and second time buyers.
Fortunately for these customers, there are lenders who recognise their importance to the market, like Precise Mortgages. And fortunately for us, Precise also recognises our expertise in this area of the market and has given The Select Partnership exclusive access to a powerful new product.
Precise’s Almost Prime and Near Prime range are now available via packagers at 85 per cent LTV, as opposed to the usual 80 per cent. This is a revamped version of the 80 per cent Home Owner range and starts at just 2.64 per cent for some Almost Prime customers, representing fantastic value.
It comes at just the right time, with consumer confidence at its highest point since February 2010, according to Markit’s seasonally adjusted household finance index. Apparently a boost in job security is behind the rise, which is fundamentally a plus for everyone involved in the industry after several years of low confidence and fragile job security.
Because the last few years have been difficult for many people who might not otherwise have experienced a default or entered arrears, Precise has factored that into its criteria. There are a number of scenarios reflected in the range and borrowers are graded on propensity to pay, something they feel is likely to benefit the majority customers.
The fact that Precise has decided to focus on packager distribution is a big boost to our sector. Having an exclusive angle makes it easier to deliver the right quality of applicant, something we’re passionate about and known for. This type of lender commitment helped drive growth in the packager market in the past, so this is a very encouraging move.