Evolve and grow Loan Introducer chats to Steve Brilus, chief executive officer of Manchester-based second charge lender Evolution Money, about some of the challenges of lending in a COVID-hit market Tell us about Evolution Money Evolution works with advisers and brokers to offer their clients subsequent mortgages, in the form of second or third charge, which are protected by way of a unilateral notice, avoiding the need for consent from the first charge lender. We provide the advice and take on all the regulatory processes. You recently launched a 140% LTV second charge, up to £50,000. Are you seeing a lot of demand for this? I think we would say there’s an increase in demand for second charges right across the board, but certainly in this new normal we believe there will be a greater number of potential borrowers for whom these types of products will be required. Borrowers, for example, might have missed mortgage payments, or seen a change in the way they work or the jobs they do. As 2021 moves on, we anticipate these types of borrowers will want to access the equity in their homes and a second charge might be the right option for them. How hard is it to vet ‘bad credit’ borrowers? Separating out the genuine borrowers who may have had a temporary blip in their history, as opposed to those we, or indeed anyone, should not lend to is not easy, especially with the recent Credit Bureau reporting requirements for deferred COVID-19 payments. However, that’s what we do as a business and it’s a hugely important part of our work. It’s why we speak to every one of those potential customers and thoroughly explore all their individual circumstances, so as to understand why they may have those credit markers. The positive of such a thorough review is that we quite often say yes to customers that other lenders might decline, and advisers should certainly consider that when they’re looking for lending options for clients with this type of credit profile.
MORTGAGE INTRODUCER APRIL 2021