These products are aimed specifically at the client who has been turned down for a true prime rate with a bank due to income or credit status, but who still expects not to have to pay over the odds for the cost of funding.
Kevin Cooke, sales director at Business Lending, believes that commercial lending was due to take another leap forward with fine prime: "Historically, there has been a large rate gap between the prime commercial lending done by the banks and the adverse credit commercial offerings in terms of pricing. We believe that clients who do not quite meet prime lender requirements or have some adverse credit have had little choice but to take whatever rates have been available. Now there is a real alternative for brokers to offer their clients a commercial mortgage at a more competitive rate.”
Kevin Jones, managing director of Omega FS, commented: “Fine prime products will fill the void between true non-conforming and prime products which many clients currently fall into. Intermediaries and their clients will welcome this addition to the portfolio.”
