Pepper has received a big tick for its sub-prime products, which one broker said could help build a more loyal client base.
Standard & Poor’s has affirmed Pepper’s “strong” sub-prime residential loan servicer ranking while also awarding it a “strong” prime residential loan servicer ranking for the first time.
Grand Capital Finance Group writes many Pepper loans, with about 55 per cent of its business coming from the non-conforming sector, according to director Dorian Traill.
Mr Traill said non-conforming clients were often extremely grateful to brokers who could push loans through for them.
“Some become extremely loyal. It comes down to being solution-based rather than an order taker. That’s how we define the difference between non-conforming and 'mainstream',” he told The Adviser.
Mr Traill added that the Brisbane firm also helped clients work towards mainstream status.
“Most people who realise they’re in the non-conforming space are a bit apprehensive because the rates are a bit higher. They want to know how long they have to be in the higher interest rate for,” he said.
Mr Traill said most non-conforming loans were straightforward and required only a little bit more work on the part of brokers.
“It’s a little bit riskier, but we specialise in it and we’ve been doing it since 2003, so we know what questions to ask,” he said.
Want to see more stories from trusted news sources?
Make The Adviser a preferred news source on Google.
Click here to add The Adviser as a preferred news source.
