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IMLA calls on government to help sub-prime market

The Intermediary Mortgage Lenders Association is calling on the government to extend its funding to cover sub-prime lenders.

A recent IMLA survey showed that just 4% of mortgages sourced by brokers in Q4 2008 were sub-prime.

Peter Williams, executive director of IMLA, said: “The number of consumers with imperfect credit histories is rising rapidly. The government should help expand funding to help those people – this is a two-way street. It must extend its support for the mortgage market so it covers the full range of lenders including those that don’t take deposits, freeing them up to offer specialist products to the parts of the market which are most in need.

“Such a move would reflect the reality of a complicated mortgage market that is still short of funds. There has already been a natural and dramatic reduction in the number of high LTV, sub-prime, self-cert and buy-to-let products and as a result it is difficult for many borrowers to remortgage, let alone for new borrowers enter the market.”

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