Salt – flavour of the month?
Despite initial broker concerns that borrowers were being given a sub-standard service, as they do not receive the same ‘perks’ and offers as building society members, Tony Capon, head of sales at Salt, admitted interest in the lender was above expectations with over 500 brokers registering for information at the Mortgage Business Expo show in London.
Capon went on to explain the building society’s decision to operate a separate arm for its non-conforming business. He said: “Once the borrower has repaired their credit and their initial debt from the mortgage, they are free to redeem their mortgage across to the Derbyshire onto a normal deal which gives them the opportunity to become a member of the building society.
“Derbyshire is giving borrowers the opportunity to receive membership from the building society once they have proved their credit is repaired and we are different from other non-conforming lenders in this respect as we give them the option to move across to a mainstream deal when this is the case.”
He went on to say he expected larger business volumes within the non-conforming market as brokers look to expand their income potential. “Brokers clearly have to look for new income streams and now have a deeper understanding of non-conforming. The market continues to grow and is currently expanding at double the rate of the mainstream sector,” he added.
Ian Balfour, sales and marketing director at Solent, which packages Salt products, was pleased with the initial enquiries into the brand’s range. He said: “As more lenders are moving into the non-conforming area customers have a better choice. Salt has innovative products and good pricing which can only benefit the consumer.”