View more on these topics

Research shows rapid growth in self-certification lending

The 2002 Mortgage Achilles research study, which was undertaken among a sample of 250 intermediaries by research company BDRC, shows that the self-certification market is now the biggest niche mortgage area for intermediaries.

The research, which was provided to subscribing companies last month, shows that 93% of intermediaries who handle specialist and niche mortgage products, now deal with self-certification mortgages. This is a rise of 13% on last year. Buy-to-let lending now falls in second place, with 83% handling this area, down by 3% on last year.

The self-certification sector accounts for 42% of volume in the niche lending area, up by 13% from last year. Buy-to-let has fallen to 22% of the market, a drop of 11% since last year. The average self-certification mortgage was £101,300, up 13% on 2001, whilst the average buy-to-let loan had risen by 19% to £80,700.

For the third year running, UCB Home Loans, the specialist self-certification lender and subsidiary of Nationwide Building Society, was named as the preferred self-certification specialist. The company received a 16% share of the vote and was followed by Birmingham Midshires and Halifax in joint second place with 12%.

Intermediaries rated UCB Home Loans highly for having a good product range and competitive rates, and named it the market leader in efficient administration, sticking to decisions in principle and providing regular updates on applications.

Charles Reed, managing director at UCB Home Loans, says: “Changing working patterns and the increasingly specialist requirements of the self-employed are contributing towards this growth in the self-certification market. Our lending is specifically geared towards this sector, and we are delighted to remain in first position as intermediaries&#39 preferred self-certification lender.”

From a list of 20 factors which are important in choosing a niche or specialist lender, intermediaries named the top three as having decision makers on the telephone (63%), flexible underwriting (63%), and consistent decision making (61%).

Recommended

OFT bans estate agents

Estate agents Robert Michael Cheslett and Paul Pacelli Quigley have been banned from estate agency work. Mr Cheslett, and Mr Quigley, who have both worked as estate agents, received Prohibition Orders in separate actions by the OFT. They are the fourth and fifth estate agents to be banned by the OFT this year. Stockport Trading […]

Mortgage lending breaks record in July, says CML

Mortgage lending set new records in July as gross lending totalled £21.8 billion, an increase of 41% year-on-year, new CML figures have shown. But although loans for house purchase and remortgaging both reached record levels, the latest monthly figures followed a quieter period in June during which lending was affected by both the jubilee celebrations […]

Excessive fee rule

The FSA intends to introduce a rule on excessive fees for mortgage advice or arranging, similar to the excessive charges rule that exists for investment business. The regulator says this will help set standards for the prevention of high-pressure selling, excessive charges and inducements. The FSA has proposed that a responsible lending rule remains valid […]

Rights and wrongs of right-to-buy

Since 1980, when council tenants were first given the right-to-buy, 1,500,000 council houses and flats have passed into private ownership. Many mortgage advisers believe the right-to-buy market has now reached saturation point and I can understand this view, as the sale of council homes has declined from a peak of 167,000 in 1982/1983 to between […]

Newsletter

News and expert analysis straight to your inbox

Sign up