According to the specialist lender, there is still plenty of opportunity to sell ‘micro mortgages’ to use for almost any purpose.
Clients with no mortgage outstanding, often look for a small amount of money to fund some home improvements for example. However, most traditional lenders will not lend sums of money smaller than £25,000. A smaller mortgage is often the best solution for them, but these tend to be offered by more specialist or alternative lenders.
Cheshire Mortgage Corporation suggests that consumers who would be ideal candidates for one of their ‘micro mortgages’ would be people whose mortgage is paid off in full or owners of inherited property for example.
These groups have unencumbered properties, which means a secured loan wouldn't be available to them, and they would therefore need to find alternative ways to raise funds.
Nick Jones, National Sales Manager at Cheshire Mortgage Corporation commented:
“There are a number of people out there who aren’t looking to borrow large amounts on a mortgage, so will be ignored by high street lenders.
“There is a real opportunity for brokers to generate further business if they consider offering a product like a micro mortgage”.
The company says that a micro mortgage product can complement the offering of mortgage brokers and networks alike, providing them with even more opportunities to meet their client’s needs, increase sales and revenue.
