"There is considerably more financial inclusion meaning people emerging from debt management solutions are no longer permanent banking and borrowing outcasts."
Peter Dean, insolvency expert and chairman at Your Expert, believes brokers will play a key role in making prospective borrowers with historical credit issues aware of their increased options.
Many of these lenders, the most recent of which is Magellan Homeloans, do not 'credit score' and instead look at each application on a manual, case-by-case basis.
In what Your Expert Group describes as "a sea of change in the Scottish lending market", even prospective borrowers who have emerged from debt management programmes, bankruptcy and Protected Trust Deeds can now be considered for a mortgage, with rates starting from 2.99%.
Peter Dean commented: “A growing number of specialist lenders are launching in Scotland that are much more accommodating to borrowers who have had credit issues in the past, even as little as 12 months ago. They are built on the premise that debt management solutions such as Protected Trust Deeds get people into the habit of meeting monthly repayments and sensible budgeting, and so are an important step in their financial rehabilitation.
"Today, with increased lender choice, there is considerably more financial inclusion meaning people emerging from debt management solutions are no longer permanent banking and borrowing outcasts. We estimate up to a fifth more Scots could get onto the property ladder in 2019 and brokers will play a key role in ensuring this happens."
Simon Read, Managing Director, Magellan Homeloans, added: “We know from talking to brokers that there is far too little choice for complex borrowers in Scotland who have been turned down by High Street lenders. We’re delighted to be extending our expertise in this area into Scotland and supporting brokers in finding funding for their clients.”
