Matt Tristram, joint managing director of Loans Warehouse, says MMR has finally delivered clarity and structure around some of the key hotspots in secured lending after years of uncertainty.
He said: “Secured loans have been a welcome avenue for impaired credit and self-employed borrowers since the credit crunch began. However, lenders have been anxious about operating in this sector, fearing retribution and redress in the future depending on how the MMR was going to fair.
“I believe the new rules will be a shot in the arm for the secured loan industry and while it will not be "open season" for impaired credit lending, this clarity will give lenders the confidence to move forwards and create new and innovative products.”
Tristram went on to say that while there has been much debate around impaired credit the philosophy around sub-prime lending was always to ensure that the client was not isolated or penalised for mistakes or circumstances of the past.
And he added: “Impaired credit is acceptable, so long as the client can afford the loan. As long as lending criteria reflects this, I think this is a positive step in the right direction. Entrepreneurs (or the self employed) can apply for a mortgage on an execution only basis, again a very sensible move.”
