A new lender which currently offers savings products to customers, is about to offer mortgages for the first time, to those who have difficulty borrowing from a traditional source.
The lender is targeting the self-employed and contractors, and anyone who has a complex income and would struggle to obtain a mortgage elsewhere. Secure Trust Bank is offering mortgage deals, with a starting rate of 2.99%, lending for properties which have a value up to £2 million. However, the lender is not offering directly to customers, but through a mortgage broker.
According to a report by Moneywise, borrowers face a host of difficulties to get onto the property ladder, especially contractors and the self-employed. Data released by the Office for National Statistics states that there are 5.5 million people who are either working on a zero-hour contract, or are self-employed. Many of them find it difficult to get a mortgage from a high street lender. The managing director of Secure Trust Bank, Esther Morley, said the company will be offering an alternative to borrowers who are struggling to secure a mortgage with a traditional lender.
Morley stated that millions were looking for a better mortgage deal, wanting to move to a new house, or trying to get onto the property ladder. The lender expects to serve borrowers who don’t fulfil the typical criteria of a lender.
To obtain the most suitable mortgage, buyers need to seek the advice of a mortgage adviser who has spent time on a CeMAP training course, and know about lender’s criteria.
