The specialist residential property lender has said it expects to see more brokers looking at this source of business.

With traditional lenders unlikely to lend sums of money smaller than £25,000, some consumers might find it difficult to secure suchamounts. These would include those clients that have no mortgage outstanding, or owners of inherited properties. As their properties would be classed as unencumbered, they would not be eligible for a secured loan.

Cheshire Mortgage Corporation suggests that niche products like the micro mortgages offered by them as a specialist lender could fill this gap and allow such clients to secure the finance they need for home improvements, or other purposes.

In line with this prediction, Cheshire Mortgage Corporation has provided its top tips for identifying an appropriate candidate for a micro mortgage.

1. Loan value: Requires small sum of money (less than £30,000)

2. Mortgagestatus: No current mortgage against the property i.e. unencumbered

3. Proven affordability and sustainability

4. Loan term: 7-30 years

Nick Jones, National Sales Manager at Cheshire Mortgage Corporation commented:

This year, lots of homeowners might be looking to generate money to re-invest in their properties. For those with unencumbered properties, it could be quite difficult to go through the traditional route, so we expect to see them looking at products like micro mortgages.

This could be a potential growth area for brokers who add these types of products to their portfolio.