Not enough awareness and understanding of non-bank lending

Known for setting up iLender, Royle, who has been an adviser for more than 30 years in several countries, told a Pepper Money webinar this week that this obsession is because the major banks over many years have spent an obscene amount of money promoting their interest rates, probably to the exclusion of borrowers knowing little about other avenues for obtaining mortgages.

He became an authority on the non-bank sector in the UK during the 1990s and set up his New Zealand company in 2006.

“Historically mainstream lending in most countries has been good for most people, but there are a small number of people, who for whatever reason, fall outside the mainstream and there needs to be a safety net or solution for them.

A survey taken a few years ago concluded 40% of Kiwi borrowers who go to a mainstream bank and are given a no, told they can’t have as much as they want or the structure of their borrowing is not right, give up and stop looking for a loan. “That’s crazy.”