Cheshire Mortgage Corporation has told brokers not to overlook the potential for recommending ‘micro mortgages’.
The lender believes many intermediaries are overlooking the opportunity. It says often there are clients with no mortgage outstanding who are looking for a small amount of money – to fund some home improvements, for example.
Many lenders won’t lend under £25,000, however, although a number of specialist lenders will.
Cheshire Mortgage Corporation claims that consumers who would be ‘ideal’ candidates for one of their ‘micro mortgages’ would be people whose mortgage is paid off in full or owners of inherited property for example. They have unencumbered properties, which means a secured loan wouldn’t be available to them.
“There are a number of people out there who aren’t looking to borrow large amounts on a mortgage, so will be ignored by high street lenders,” said Nick Jones, national sales manager at Cheshire Mortgage Corporation. “There is a real opportunity for brokers to generate further business if they consider offering a product like a micro mortgage.”