With the first batch of clients coming to the end of their deals in the next couple of months, the lender believed the number of people who had improved their credit score showed the importance of offering credit repair options to non-conforming clients.
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Linda Will, managing director at Accord Mortgages, commented: “The fact that 70 per cent of people will now be prime under the guaranteed credit repair is amazing and shows how credit repairing is working.”
While the majority of cases moving to prime had been from near prime, there are some medium and heavy clients who had also made the step up.
Will also insisted offering credit repair was advantageous for lenders as if a client fell into arrears on a prime product, they could be offered a credit repair deal.
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Offering credit repair is a good retention strategy as if a prime deal comes to an end and they have slipped into arrears, you can offer them credit repair,” she added.
Dev Malle, sales director at Personal Touch, said:
“From a Treating Customers Fairly perspective, you are always trying to make sure the client gets the best rate and, if they are adverse, help them move towards a prime rate. However, it’s critical you look at the whole of the market.”
