Much of the growth of the non-conforming market can be put down to the development and enhancement of product criteria. Covering everything from near prime, to heavy adverse, the product developments have enabled more and more people to take out a mortgage, in an increasingly responsible way. Although small concerns still remain with some people about the legitimacy and ethical nature of products in the heavy adverse arena, lenders and intermediaries work hard to ensure that people recognise the financial obligations, and risks involved with taking out such a product. The industry has worked hard to rid itself of the tag it once had associated with it, of being an ‘unfair’ market, and the non-conforming sector is now one of the biggest-growing sectors. With consumer debt levels continuing to rise, the non-conforming marketplace will have an even bigger role to play, with increased product development one of the main catalysts for this increased sector.
As the non-conforming market has expanded, lenders have had to diversify their offerings, catering for the different levels of the non-conforming market, and the borrowers within it. Rates are now similar to prime rates, with the penalties dependent on the level of product the borrower is in need of.
The intermediary has a valuable role to play within the non-confirming market, and with an increasingly busy marketplace, the borrower will undoubtedly benefit.
One such lender who has enhanced its range, to suit the changing needs of the borrowing community is BM Solutions.
BM Solutions has recently launched some new enhancements to its non-conforming criteria categories, along with a brand new suite of products. As part of the product enhancements BM Solutions has tailored the product loan-to-value (LTV) levels to meet clients’ needs, a move that was made in August.
The introduction of a new level of Near Prime products, allowing CCJs up to £500, means that non-conforming customers will be offered even more competitive products. This enhancement has brought improvements to other light adverse categories as the allocation of CCJs for some bandings have been increased.
Commenting on the range changes, Chris Pearson, head of sales and marketing, said: “With this move we are now providing even further tailoring and competitive products, from customers with a light bump or scrape on their credit records through to those with more significant adverse. We want to continue to lead the market in product and service innovation.”
