"The sector is not working in the best interests of the client if penalties are added the moment a borrower goes over term"
Customers will have the capacity to extend a loan for up to six months if serviced, and up to two months if non-serviced.
Jack Coombs, director at Aspen Bridging, said: “There are two key considerations at play here. The sector is not working in the best interests of the client if penalties are added the moment a borrower goes over term, because ultimately how does this protect their equity and their ability to refinance?
“For a ‘flextension’ to be offered there has to be a good reason for the requirement and a credible exit must remain in place, and if these stipulations are met then it is in everyone’s best interests, including ours, to find a workable solution.
“The client always has to remain the foremost consideration in every transaction, that’s how you retain repeat custom and protect the long-term reputation of your business."
