Budget 21: Specialist market primed to support borrowers feeling COVID impact long-term
Budget 21: While welcoming the measures introduced in Chancellor Rishi Sunak’s Spring Budget, Bluestone Mortgages has warned that the long-term picture is still unclear.
Steve Seal (pictured), managing director at Bluestone Mortgages, said: “When it comes to workers, government support measures have been crucial in alleviating the financial pressures of COVID-19 for thousands of these individuals.
“Indeed, the government’s decision to extend measures such as the furlough scheme to September will ensure that impacted workers can continue to access the support they need over the short-term.
“The long-term picture, however, could look very different. The wider economic consequences of the pandemic will continue to be felt for some time yet and as a result, many workers could struggle financially in the long-run – something which could end up damaging their credit profile.”
As a result, Seal said, an increasing number of borrowers will be rejected from mainstream, high street lending.
He added: “The specialist lending market will, however, be in a prime position to support these borrowers, and it’s vital that lenders equip advisers with the knowledge and tools they need to meet customer demand over the long-term.
“Meanwhile, I hope to see the UK government extending the support it pledged to self-employed workers as part of its 2019 manifesto to all consumers who are underserved by mainstream lending markets – including complex credit borrowers.
“First and foremost, this will mean improving this community’s access to finance and credit, to ensure that the growing number of ‘non-vanilla’ borrowers expected post-crisis are not disenfranchised from traditional lending streams.”