Brightstar Financial is launching a campaign to help borrowers rejected for mainstream lending through education, research and lobbying the Government and regulators.
The specialist distributor’s ‘Could You? Would You? Should You?’ campaign is designed to help a group Brightstar dubs the ‘credit crushed’, who struggle to get the finance they need.
A Brightstar statement says: “We see ‘credit crushed’ borrowers as those who are turned down for mainstream deals, or have complicated requirements but are unaware of the specialist options available to them meaning they don’t get the finance they need.
“We know that in 2016 there were 350 declines a day for the mortgage sector alone. And this just scratches the surface as it does not include those turned down before application or declines from various other property loan sectors.”
Brightstar says the issue is not limited to mortgage advice, but is happening across the specialist sector, such as those looking to finance housing repairs.
The distributor says it will launch a lobbying campaign and produce research on broker and consumer trends.
The firm says: “This will involve shaking up any complacency at the regulator, parliament, banks, advisers and borrowers themselves. We must work together and do more to stop the disenfranchisement of borrowers.”
Brightstar adds: “While the majority of brokers are doing a fantastic job, our experience is that there is still a significant minority that are closing the door unfairly and on that basis we will be petitioning for the regulation of advice via the FCA and the Treasury.
“FCA regulation does not go far enough in expanding mortgage advice across all finance options.”
Brightstar Financial head of marketing Michelle Westley says: “This campaign means supporting credit crushed borrowers across the specialist loan market. This goes beyond mortgages.
“It means telling the FCA and Treasury to fix their rules to ensure all borrowers are given access to professional advice on the full range of options, not just mainstream products.
“And it means educating consumers about the role of specialist finance and the innovative solutions available to them.”
