Atom responds to ‘gap’ in near-prime remortgage market

Increasing demand for remortgages in the near-prime arena has left a gap in the remortgage market, the managing director of Atom (All Types of Mortgages Ltd) has claimed.

Dale Jannels said more products should be made available in this market to meet people who are on the fringe because of their credit score.

His comments came after Atom entered into an exclusive offering in conjunction with Hanley Economic Building Society, whereby Hanley will offer loans from £50,000, with a minimum term of just one year and a LTV of up to 70 per cent.

Mr Jannels said: “Demand is increasing in the near-prime arena and lenders are reacting to this. Hanley has come to the specialist market with a superb offering. It has seen some gaps in the remortgage market and catered for these.”

In addition, the loans have no early repayment charges and most CCJs/defaults over 12 months old are ignored.

Other highlights which would be attractive to the near-prime market include up to five CCJs in total, and no credit scoring.

Adviser view

Richard Bousfield, a mortgage broker at The Surrey Mortgage Broker, said: “Most mortgage brokers can approach a packager and ask whether you have anything that fits a profile. But it is restrictive when the deal is exclusive to them.

“My personal view with regard to using packagers is that it’s fine, although whereas individuals want you to get the best deal from them, you lose an element of control.

“However, the offer is only up to 70 per cent LTV – as a broker I would say there may be other options available.”