Asset management specialists Spicerhaart Corporate Sales have joined forces with fact-finding experts Excel and UK law firm TLT to create a unique interest-only solution for lenders with interest-only customers that are either coming to maturity with no plan in place or are already there.
Both the customer and the lender will be engaged throughout the journey to resolution, whether that is repayment, conversion, re-mortgage, the sale of the property, or where there is no other solution, litigation. This unique approach delivers a clear strategy for the lender within 90 days.
In May 2018, UK Finance reported that there were 1.7million interest-only mortgages outstanding in the UK with around 200,000 due to mature by 2020. While most of these customers will engage with their lenders and agree a resolution, our proposition will assist those borrowers that are more reluctant, either because they do not like their options, or they fear they simply have no way of paying back the outstanding debt.
The new partnership brings together experts in field, legal and asset management.
FCA regulated financial services company Excel are experts in face to face engagement and fact-finding with customers to understand individual circumstances, whilst Spicerhaart Corporate Sales, which has assisted borrowers with expired interest-only loans for some time, can assist the customer from a property related perspective.
Supported by UK law firm TLT throughout the journey, this combination of expertise offers an approach that will deliver a resolution for lenders with interest-only customers that are either coming to maturity with no plan in place or are already there.
Dave Miller, client account manager at Spicerhaart Corporate Sales said: “Over the past few years lenders have successfully implemented a wide range of strategies to contact their interest only customers. However, a proportion of those who are often the most vulnerable of customers, are still failing to engage, while many others are now past their term expiry date with no formal agreement in place for resolution.”
Laurence Venn, CEO at excel said: “Our new proposition addresses the difficulty lenders face in resolving every case and is aimed at avoiding drift, which so often can occur in these difficult situations.”
Graham Walters, who is a partner at TLT added: “We aim to provide absolute resolution both for the customer and the lender based on the customer’s individual circumstances. This is an issue that needs to be dealt with and we believe that our approach can assist to achieve this.”
Dave Miller concludes: “With arrears and repossessions at a historic low, it is evident that lenders are seeing greater success now than ever before in terms of engaging interest-only customers. But there are still many customers either unable or unwilling to engage which presents a real challenge for lenders.
“That is why we have created this proposition; we are able to combine all the expertise needed to be able to find the best solution for both lenders and their customers.”