Prime mortgages 'swamping market'
Monday, 04 Feb 2008 15:07
Mortgages: Subprime deals swamped by prime
Sub-prime mortgages are still rife in the market but prime lending is the dominating force, new research has found.
According to the Intermediary Mortgage Lenders Association (IMLA) so-called non-conforming mortgages, such a sub-prime and buy-to-let loans, make up just 30 per cent of the market.
The good news, according to the IMLA, was that the intermediary sector – brokers and mortgage advisers – were handling 90 per cent of this non-conforming business.
According to the IMLA this showed that intermediaries were helping more customers with unusual requirements rather than direct lenders.
Peter Williams, IMLA chief executive, said: "What is clear is that the intermediary sector has played an important role in providing mortgage products for customers with unusual requirements and circumstances, reflecting the dynamism and flexibility of the UK mortgage market."
The IMLA revealed, overall, the mortgage market had grown between 2005 and 2007 but there was little movement in the size of the self-certification and sub-prime markets.
However the same period saw huge growth in prime lending and buy-to-let.
Mr Williams said intermediaries handled in excess of £230 billion in 2007.
He added: "Even in a slower market, based on projections for the size of the market in 2008, they will still be looking at substantial levels of activity in the current year.
"With an intensification of competition between channels and some specialist markets contracting, there should be some good deals for the consumer this year."