Cutting through the noise with clarity

As with many lenders, Castle Trust took the decision to manage its risk appetite during lockdown, but now as restrictions are being lifted, we are re-introducing criteria to meet the demand from brokers.

A key part of this process is acknowledging that, in the current uncertain environment, as the country is still tentatively emerging from lockdown, we have an appetite to lend, but not quite such an expansive appetite as we did prior to the pandemic.

It’s only sensible that any lender, or any business for that matter, takes a more vigilant approach to risk at the moment – we are in unprecedented times and we need to tread carefully. But it’s rare that lenders actually acknowledge this.

There’s still an awful lot of noise being made about lenders being open for business and the deals they are writing – but I haven’t seen much to actually help brokers place their cases.

At a time when so much is changing, so frequently, brokers and their clients don’t need more noise, they need more clarity. Which is why we have taken the decision to be very clear and open about our lending appetite so that brokers know exactly where they stand.

We will continue to investigate new opportunities to expand our offering as and when the Covid Alert Level falls in the future and in response to how the economy reacts.

These changes are unlikely to be accompanied by big bang launches and bluster in the trade press, but they will be clearly communicated so that brokers understand exactly what we will, and what we will not, lend on at the time.

Unfortunately, we can’t provide a prediction of exactly what will happen in the future, but we can provide some clarity about what options brokers will have as and when things change. We think that this provides a sensible approach to communicating and lending, not more noise. And that’s what brokers need to navigate this difficult situation.