Non-conforming borrowers – is it easier to get a mortgage?


New lender Bluestone Mortgages, which launched earlier this week, has said it will consider lending to non-conforming borrowers.

This is excellent news, with many strong mortgage applicants considered to be non-conforming because they are self-employed, are older or have had credit issues in the past. They don’t necessarily have to be big problems but they can make it very difficult to get a mortgage.

Lenders need to take time to consider these applicants. High-street lenders tend to be far too vanilla with their criteria and reject people without delving into the detail first. Some lenders claim to be ‘non-conforming’ but turn out not to be very different from mainstream banks.They seem to be so bound by Mortgage Market Review rules still that there can be no sense used in the mid market; it is all about ticking boxes.

Banks are getting better at understanding complex income for contractors and the self-employed, but it would be good to have a lender with a more sensible view on age, interest only or income and affordability. For example, allowing more than five times if someone is wealthy, guarantors or discounting school fees from affordability calculations as long as there was a way to pay them in place.

Do get in touch if you have any questions about non-conforming lending.

Jonathan Harris
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Jonathan Harris