The late 1990s saw a whole new type of lender enter the market; the non-conforming lender. Non-conforming lenders specialise in writing loans for the self-employed on a self-certified basis (Lo Doc), and for the credit-impaired. These lenders such as Bluestone, Liberty, Pepper and GE are called non-conforming because their customers are borrowers who do not conform to traditional lenders’ guidelines.

They had so much success in the Lo Doc market that the banks were forced to introduce their own Lo Doc loans with reduced interest rates. The non-conforming lenders fought back by matching the banks in the Lo Doc market and introducing products that competed with them in the bank’s traditional markets.

Some of these lenders no longer exist and more will come and go as the economic situation fluctuates.  You should make yourselves familiar with the financial backing and security of any smaller lender prior to making arrangements to access funds for their clients.