Non-bank criteria changing through Covid
Many alternative lenders changed criteria for customers through the second lockdown, creating a challenging environment for advisers and their clients, according to adviser service Solutions Out Sourced (SOS).
Thursday, September 3rd 2020, 2:13PM
Non-banks, near-banks, and main banks adjusted their lending criteria through the Auckland lockdown, making things more difficult for advisers, SOS says.
Jen Latham, co-founder of SOS, said: "Advisers were coming to us because the market was changing so rapidly with Covid. Lending was being turned on and off again with a lot of non-banks, but we also saw that with the main banks."
SOS helps advisers find non-bank loans for their clients, specialising in customers turned away by the big banks, and managing the sourcing and application process.
The company was formed by Latham and fellow ex-Southern Cross Partners executive Ross Brogden.
Latham said high LVR loans had proven a challenge for advisers in recent times, with many non-banks unwilling to go beyond an 80% loan to value ratio.
With a growing number of non-banks in the NZ market, Latham believes there's a "lender for every client" who may have been turned away elsewhere.
The company added: "Bad things happen to good people and both near and non-bank lenders are here with a lending hand to either provide a genuine alternative to bank lending or to eventually get back to main bank once the life event is resolved, defaults paid, or business financial history achieved."
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