The announcement came after Victoria Mortgages and Kensington Mortgages moved into the non-standard construction sector and recently launched new products aimed at making their mark.
London Scottish Mortgages, the non-conforming niche lending subsidiary of London Scottish Bank plc, said it welcomed the recent announcements but questioned the time it had taken for other lenders to see the market’s potential.
Kevin Cooke, managing director of London Scottish Mortgages, said: “I’m surprised at the time it has taken other lenders to dip their toe in the water.
“We have always treated non-standard construction properties in the same way as normal properties, which makes it all the more strange that it is considered newsworthy that two other lenders are making tentative moves to lend on a restricted basis.”
Matt Grayson, chairman of Victoria Mortgages, said: “We spent a lot of time going through all the aspects of the market, updating and modernising practices, and it was a lot of hard work.
“The normal reaction is to be reluctant to accept this. There’s enough easy business to get rather than taking the time and effort to update the market. Lenders now have to do that work or simply compete on price.”
London Scottish Mortgages also announced that business for the first quarter is well ahead of its forecast with a significant increase in new business over the same period last year.
Cooke said: “In two years we have moved from being a peripheral player to one that fills a significant niche in a market which demands innovative solutions to the challenges presented by unusual properties and clients who have trouble proving casual income and are often turned down by other lenders.”
