Speaking at the Financial Services Expo (FSE) today, Jupp spelt out a number of potential product areas where advisers could see growing levels of business including clients with unusual incomes, those looking at purchasing unusual properties, short-term lending, self-build, secured loans and non-conforming.
Talking of potential clients who do not fit standard product criteria including the self-employed, those with poor accounts and offshore workers, he said: “Most of these individuals will not be able to get a mortgage with a high-street lender. The mutual sector has led the recovery in this area – lenders such as Saffron, Kent Reliance and Buckinghamshire. They are not lending irresponsibly but working and understanding the individual client.”
Jupp also said that those who disparaged the short-term lending sector were working off ‘mis-information’. He suggested that a number of lenders currently working in this sector would become regulated first-charge lenders in their own right.
He also cited the recent launch of Magellan Homeloans as a potential game-changer in the non-conforming market suggesting that prior to the launch many interested institutions had not looked to enter the sector because they felt they would not receive FSA authorisation. He said: “I have to say I was surprised to see the launch of a real non-conforming lender where the borrower actually needs to have non-conforming debt to quality.”
Jupp derided the Government’s Help to Buy 2 Scheme which is due to launch next week, saying it would have little or no impact on the specialist sector and was the wrong scheme at the wrong time, saying it did nothing to increase the supply of new homes. Talking about the scheme’s potential to inflate house prices further he said: “This is a misguided and mis-thought policy; it is a housing policy disaster. Every time the Government get involved in the housing market they balls it up.”
FSE’s final day is taking place at Old Billingsgate, in the heart of the City of London, today is the second and final day. FSE was officially opened yesterday by Dragons’ Den star, Duncan Bannatyne, who welcomed the exhibition as a new and exciting addition to the financial services calendar.
FSE is split into seven specific zones to promote an enhanced delegate experience. They are: Mortgages; Commercial; Protection; Distribution; Legal; Technology; and Specialist Lending – each zone is colour-coded and the aim is to cover the broadest range of financial products and services that are available to advisers.
