Non-bank lenders have been changing their lending criteria for customers since the second lockdown started, according to adviser service Solutions out Sourced (SOS).
SOS found that non-banks, near-banks, and main banks have tweaked their lending criteria during the second COVID-19 lockdown, leaving advisers and clients struggling.
“Advisers were coming to us because the market was changing so rapidly with COVID. Lending was being turned on and off again with a lot of non-banks, but we also saw that with the main banks,” said SOS co-founder Jen Latham, as reported by Good Returns.
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Advisers had already found the high loan-to-value ratio (LVR) loans challenging amid the pandemic, with many non-banks refusing to accept LVR lending over 80%.
However, Latham pointed out that the growing number of non-bank lenders in the country allows customers to find other lenders if they had been turned away by their lender.
“Bad things happen to good people, and both near and non-bank lenders are here with a lending hand to either provide a genuine alternative to bank lending or to eventually get back to the main bank once the life event is resolved, defaults paid, or business financial history achieved,” Latham said.