Vow home loans: Are you missing out on specialist options?
Can you afford to turn your back on the fastest growing lending market segment in 2018? - If not, you might want to read on...
While the overall lending market has contracted due to regulatory changes imposed on the banks, there has been a shift in how deals are allocated across the market. Deals that were considered "prime" in 2016 or early 2017 are now no longer fitting the risk appetite of the major or second-tier lenders.
If we were to sample 10 brokers during 2017 and asked if they do specialist lending, at best 5 would say they do, the rest would say that they don't generally do "that type" of business... The perception of specialist lending perhaps being for those with previous credit issues, short term self-employed, or some other "issues".
The reality is vastly different. Yes, specialist lenders do cater for clients with the circumstances mentioned, however, they are also filling the void for loans that were "previously prime" but now cannot find a home within the established system. Here are some interesting facts worth bearing in mind, when your next client that misses the cut with a traditional bank:
1. Aren't the rates really high? Specialist lenders price for risk, so yes, if someone is borrowing at a high LVR with a history of credit problems, yes the rates will be higher. But they also offer prime pricing which is largely comparable to what is on offer elsewhere.
2. What about the fees? With the Renew/Restart range, we have access to the lowest entry costs in the market place for specialist lending solutions. For loans with little or no credit impairment, the entry costs are largely in line with market.
3. So, what's different with the assessment? First of all, with for example the Renew/Restart range via Vow Home Loans, all loans are assessed by a real person. Secondly, while there is a strong focus on living expenses, we are able to consider applications with existing mortgages at actual rate and repayments. This means that for property investors with existing commitments, borrowing capacity via Vow is often much higher than with the traditional banking sector.
4. Yeah, but how can I keep track of all of this, the rates and fees are overwhelming? The good news is that you don't need to keep track of every single rate and fee ... that's what the team is here for! All you need to do is know that there are alternatives on offer when plan A does not work out for your client.
Vow Home Loans not only have two great product ranges which help cater for the loans that were "previously prime", we also offer great prime solutions with rates starting at 3.74% for Owner-occupied and 3.89% for Investment! If you want to take the first step, reach out to the guys below - this will be a big step towards a mutually successful 2018!