Sub Prime lenders

emmaHarris_2

Point 6

6. They employ Mortgage Advisors both pre sales and post salesrubbish - you have a problem with your prime mortgage, you speak to a call centre - these are not qualified mortgage advisers

Maybe your first point of contact is through their call centre number. On establishing what the enquiry is about you are then placed through to a Qualified Mortgage Advisor. Or indeed, you have the option of dropping into your local high street shop and discuss there. Sub prime (via HML setup) you are not given these options. They do NOT exist.

emmaHarris_2

Point 7

7. Repossessions is normally the last resort repeating myself again, they work to regulation and reposession has to be the last resort for any lender. What do they do next?

Not so. Portfolio managment dictates that these types of entities can and will repossess very quickly. The terms and conditions of your new contract means that they are either very reluctant or ineed cannot change any of the terms within. Unlike prime lenders where (1) further advances could be made if applicable (2) extension periods to deal with arrears and (3) holiday payments

emmaHarris_2

Point 8

9. Average default time for repossessions is 6+ months and sometimes longer I actually know a KMC reposession that got to 17 months in arrears and still wasnt reposessed. each case is individual.

We agree each case is different but on the whole they are far quicker to repossess and certainly the entities that KMC sold the mortgage too. Your in a different playing field that most borrowers intitially expect to be in. This is portfilio management.

emmaHarris_2

Point 9
1. Do not have high street presencecorrect, no high street window/front. So what? Oh yeah you cant go and pickett??? Goto the FOS

Dealt with above

emmaHarris_2

Point 10

2. They will sell your mortgage to specially created subsidiaries with no reputations to lose once again you generalise.

I believe now we have provided examples to this.

emmaHarris_2

Point 11

3. These company’s only operate to administer the mortgage account [B]utter rubbish. Subprime lenders do operate a similar business model to prime lenders. [/B]

Again as above

emmaHarris_2

Point 12

4. They do not or seldom employ Mortgage Advisors post sales why do they need to?

I think we both now have agreed that they do need too above

emmaHarris_2

Point 13

5. Only FSA regulated Mortgage Advisors are able to discuss and advise borrowers on their mortgages or a change of the contractual terms as oposed to who?

General call centre people or administrators clerical staff - see example and cases above.

emmaHarris_2

Point 14

ROI on a mortgage account once securitised or through whole loan sales (same) is circa 3 years you forget that lenders are businesses and of course they want a return of investment. Shall we set them up as a registered charity?

The point being made is that they need to get a quick return by any means on this investment. We now have real examples where arbitory interest rate increases are being made on the principles of 'management by exception'. I.e send an arbitory letter of an increase and see who complains and then delay handling the complaints. To those who persist tell them it was an error. In one example we can show an additional income (ROI) over the 3 years of over £128m on a portfolio of 1000 properties.

emmaHarris_2

Point 15

7. Average default time to repossession 2 months

you clearly state that the figures for this are not available as they are not recorded so how do you get at that. Also look at my comment about the KMC case - each case will need to be assessed on its individual merit.

Gained through our research.