John Carrier, chief executive of Scarborough, said the non-conforming market had room for further lenders and expansion is vital in an era of spiralling personal debt. The comment followed the society’s announcement of plans to launch a specialist lending brand, Scarborough Specialist Mortgages.
Carrier commented: “Mortgage lenders like ourselves need to respond to the structural changes arising in the market by seeking to cater for the growing number of people who are experiencing financial problems.
“The latest figures from national money education charity 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, but it is about taking a responsible approach to offering these people a way out.”
Carrier added the opening up of the specialist market and increasing number of lenders had given choice back to consumers who have struggled financially, allowing them to shop around for the best deals that give them a cost-effective way of managing their debt.
Matt Grayson, spokesman for BM Solutions, said: “Competition is great. We welcome the fact that others have woken up to the potential of the market. Other lenders have been nervous about how robust the market is, but we’ve always believed in it. Choice is important, as is having brokers to sort through products to give clients the best ones.”
