Meeting the needs of the modern consumer

Since recovering from the credit crunch, specialist lenders are now looking stronger than ever. Not only are lending figures healthy, customer demand is at an all-time high, as the idea of ‘one size fits all’ fades by the day.

Every case is different, and more often than not a customer discovers that products offered by mainstream lenders are not available to them – whether because of an imperfect credit profile or their current set of circumstances.

At Vida we are committed to creating products to fill the gaps in the market and helping more people achieve their desired outcome; from a first-time buyer taking their first steps on the ladder to an existing borrower looking to remortgage.

Vida already offers a range of products to help these types of customers; however we want to do more and expand our propositions. We are very pleased therefore to be the first specialist lender to offer a Joint Borrower Sole Proprietor mortgage; Vida’s Helping Hand.

For FTBs, the product supports parents wanting to help their children buy their first home without being on the title deeds and having to pay stamp duty surcharge. In the case of remortgagors, this product allows parents to support their child without jointly owning the property, thus enjoying the same benefits as above.

Standard mortgages allow parents to be joint borrowers, but it is not being included on the title deeds or paying the additional stamp duty which makes the JBSP mortgage proposition unique. Vida identified this demand and provided a suitable product which has received a great reception thus far, and I hope others follow suit. The industry needs to keep up with market trends and ensure that appropriate products are available for customers who want to make these sorts of financial decisions.

I do believe that a majority of the market is beginning to recognise the increasing desire of older borrowers to help their children onto or to stay on the housing ladder, but there is still some way to go in easing the affordability problems faced by these groups of potential and current homeowners.

It is important to note that whilst mortgage lenders need to keep up with the growing demand for complex products, it is just as important that it is done so in the right way. Ensuring the right customer outcome is still the lender’s ultimate responsibility and will become even more important as demand increases.