The specialist market would benefit from more entrants, according to Scarborough BS.
John Carrier, chief executive at the Scarborough, said the market had room for more lenders and that expansion was vital in an era of spiralling personal debt. The comment followed the Society’s announcement of the launch of specialist lending brand, Scarborough Specialist Mortgages.
Carrier commented: “Lenders like ourselves need to respond to the structural changes in the market by catering for the growing number of people who are experiencing financial problems.
“The latest figures from Credit Action showed the average unsecured debt among UK adults was £4,540, while the total national debt figure was £1,228 billion. It’s simply no longer realistic to cater only for people with impeccable credit histories. It’s not about encouraging people to dig themselves in deeper and get into increasing levels of difficulty, it is about taking a responsible approach to offering these people a way out.”
Carrier added the increasing number of lenders in the market had given choice back to consumers who had struggled financially, allowing them to shop around for the best deals that give them a cost-effective way of managing debt.
Matt Grayson, head of PR for BM Solutions, said: “Competition is great. We welcome the fact that others have woken up to the potential of the market. Choice is key, as is having brokers to sort through products to give clients the best ones.”
