Brightstar Financial has claimed that enquiries from advisers for business owners have doubled since the launch of its self-employed exclusive product in partnership with Kent Reliance.
The product offers a two year discounted rate with no ERCs. It was launched at the beginning of March.
Rob Jupp, Brightstar’s managing director, said: “Today’s business owner is working in very difficult trading conditions and lenders looking for the usual three years accounts are rejecting many good cases simply because of out of date thinking. Cashflow ebbs and flows mirroring the economic turbulence over the past few years.
“It stands to reason that historic data more than a year old is not as relevant to calculating affordability as it is in times of greater stability. It is, in many cases, non productive as a reliable guide at the time of application in a fast moving economy like ours.
“Our product requires just one year’s accounts and the feedback we are receiving from brokers backs up our perception that mainline lender underwriting has largely given up on underwriting individual cases for a factory farming approach in which the self employed are particularly at a disadvantage.
“Fortunately, our partnerships with smaller lenders like Kent Reliance, which has maintained its ability to look at each case on its merits, means we can continue to champion the self employed.”
Andy Golding, Kent Reliance’s CEO, said: “At Kent Reliance our experienced underwriters mean we can assess each case on its merits, understanding the borrower’s income and treating them as an individual. Each self employed case is different and we want to help good cases proceed.”