"These people may now be completely back on the straight and narrow but their credit profile refuses to allow them to move on."
Be honest, you’re probably not chomping at the bit to work with homeowners who’ve had major money problems in the past. A lot of the time this is because it seems a fruitless task. Many brokers believe these clients are beyond help. But by ignoring clients seeking credit repair you could be making a big mistake.
It’s news to no one that the past few years have been difficult, financially, for a lot of people. Understandably many people found themselves missing payments or struggling with debt. Some have even been poorly advised to enter debt management plans or IVAs. These people may now be completely back on the straight and narrow but their credit profile refuses to allow them to move on.
Second charge products are ideal in these situations especially those with low or zero ERCs. Adverse lenders appreciate that not all customers have perfect credit profiles and as long as they can demonstrate affordability they’ll be accepted. Using a loan to repair their credit and pay off debt management plans can set them up for a future remortgage. Don’t be fooled into thinking there’s nothing that can be done for such clients.
Plus it’s worth noting that many lenders ignore adverse over 12 months so those clients you’re not keen to work with may not actually be considered adverse after all.
Helping a client overcome past difficulties and return to mainstream lending can be hugely rewarding and is likely to guarantee you a client for life. And if there’s ever a time to realise we shouldn’t turn away people we could actually help surely it’s at Christmas?
