Still a market for ‘micro mortgages’, says lender

Published on

Home improvements

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.”

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...

Atom bank breaks Near Prime record

Atom bank has reported another record-breaking month for Near Prime activity. Over the course of...

Berkeley Alexander appoints new BDM

General insurance provider Berkeley Alexander has announced the appointment of Grant Robinson as a...

Other news

Lenders must step up on high LTV products

Things are on the up for borrowers with a smaller deposit. The financial information...

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...