People often ask what is second tier lending?
Essentially, second-tier lending are non bank loans to help buyers secure a mortgage when the banks may say “NO”.
There are various reasons why a borrower may not be able to get a mortgage with a bank and is therefore willing to accept lending from another organisation. It may be that the borrower has a lower deposit than the bank requires, the borrower may not be able to “prove” their incomes to satisfy the bank, there may be some poor account conduct or bad credit or the borrower may fall outside of bank criteria for another reason.
The non bank lenders are known as second tier as they are generally more expensive and therefore the second choice; however there are times that some borrowers will prefer them to a bank.
Some mortgage advisers are very experienced as non bank brokers.
